Friday, July 3, 2009

Auction of KRON parent set for July 14

A newspaper in Tennessee reports that the parent company of KRON 4 will be sold at an auction on July 14. The Nashville Tennessean quotes attorneys at the firm Sonnenschein Nath & Rosenthal as saying Young Broadcasting will be sold or reorganized as a whole. The law firm says there has been a "healthy amount of interest" in the auction, being undertaken at secured lenders' insistence.

Young Broadcasting filed for Chapter 11 in February, listing total assets at about $574.6 million and total liabilities at around $980.4 million. Young owns 10 stations, all of them in the Midwest except for KRON. One of the company's most valuable assets is the real estate it owns at Van Ness and O'Farrell in San Francisco. Debt incurred to pay the $820 million for KRON is believed to be one key factor behind the company's current cash problems.

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