Chief U.S. Bankruptcy Judge Arthur J. Gonzalez has ruled in
favor of Young Broadcasting's reorganization plan, shooting down a bid from a rival
committee of unsecured creditors that sought to take over the Young stations.
Young entered bankruptcy protection in February 2009. The
New York-based broadcast group owns 10 stations, including KRON San Francisco
and WBAY Green Bay.
In April 2009, the court approved a bid from Young's
lenders, known as the Debtors, to take over what would become New Young
Broadcasting Holding Co. for a credit bid of $219.9 million. The Official
Committee of Unsecured Creditors, known as the Committee, set forth a separate
plan for reorganization before the judge.
Judge Gonzalez nixed the Committee bid in lower Manhattan earlier this
week. "The Committee's motion to confirm the Committee Plan is DENIED," he
wrote in his Confirmation Opinion. "The Debtors' motion to confirm the Debtors
Plan is GRANTED."
The ruling gets Gray Television back in the game at Young.
Young had worked out a deal for Gray to manage seven Young stations for $2.2
million a year, but Gray has been on the sidelines since late in 2009 as the rival
Debtors and Committee sparred in court.