Young Broadcasting Inc., the parent company of KLFY-TV10, on Friday filed for Chapter 11 bankruptcy protection. The voluntary petitions were filed to restructure the company's balance sheet and ensure its long-term financial health, Young said in a press release.
Young officials say their 10 television stations will continue operating without interruption.
“The day-to-day operations of Channel 10 KLFY are not going to change,” Mike Barras, general manager of the station, toldThe Advocate in a story published Saturday. He said there would be no layoffs or reduction of benefits to employees. “Everything will stay the same,” Barras told the local newspaper.
Late last year analysts and other industry insiders began speculating that a bankruptcy filing was in the offing. On Jan. 27 Young announced that it received a notification from the NASDAQ Hearings Panel that its common stock was being delisted from the NASDAQ Stock Market because it failed to meet certain NASDAQ requirements for continued listing. Trading was suspended at the open of business on that day, and company officials said they did not intend to appeal the NASDAQ panel's determination.
“Our decision to restructure through a Chapter 11 filing will allow the Company to bring its debt in line with current economic realities so that we can emerge a stronger and more financially secure company," Vincent Young, chairman of Young Broadcasting, said in a press release. "It is important to note that we are restructuring our debt, not our operations. We believe that the Company will emerge from Chapter 11 better equipped to thrive in this changing economic environment with less leverage." Young said the filing was in the "best interests of Young Broadcasting, its viewers, advertisers, employees, and other key constituents.”
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