Tuesday, November 18, 2008

No interest in KRON; Young eyes Chapter 11

Young Broadcasting says it no longer has any talks underway to sell KRON Channel 4 and might file for Chapter 11 bankruptcy protection. With $825 million in debt, the 10-station Young group says it is negotiating with creditors to restructure its debt. In its quarterly SEC filing, Young warns that if it cannot restructure its debt, it might file Chapter 11.

The bankruptcy warning came in a report which showed the company lost $24.8 million in the third quarter including $9.8 million at KRON. Besides KRON, Young owns five ABC affiliates, three CBS affiliates and one NBC affiliates in small markets.

While Young said it had no talks underway to sell Channel 4, it said it would "continue to try to arrange the disposition of KRON-TV."

At one time there was speculation that NBC and Fox were interested in Channel 4, and Young management had suggested previously that discussions were taking place with possible buyers.

1 comment:

Anonymous said...

Did you read the entire filing ? Do it again. They have many options. And the 4th quarter will be the best.
Your evocative headline with Chapter 11 in it was very irresponsible and caused panic selling in a stock already at 4 cents.