Gray Television of Atlanta will take over management of KLFY TV-10 and six additional stations owned by Young Broadcasting through a plan that received preliminary court approval Wednesday, MediaDailyNews reported.
Young will continue to operate its remaining three stations -- San Francisco, Knoxville, Tenn., and Lansing, Mich.
Young Broadcasting, which filed for Chapter 11 bankruptcy protection in February, is being purchased by its secured creditors for about $220 million, with some unsecured creditors receiving 10 cents for every dollar owed. Pending FCC approval, that means Young’s new owners are Highland Capital, Eaton Vance, Credit Suisse and Oppenheimer -- all of whom are its senior secured lenders.
The announcement of the purchase came July 15, a day after Young backed out of a planned auction of its 10 stations. The company reneged on the auction after evidently getting no bids at or above a satisfactory level from the 66 potential buyers it had reached out to. The struggling media company posted a net loss of $370 million in 2008; the bankruptcy allows it to escape from almost $350 million in debt.
This week New York Southern District Bankruptcy Court Judge Arthur Gonzalez not only tentatively approved the sale of Young to its secured lenders but also approved the new owners’ choice of Gray Television to manage seven of the stations for an annual fee of $2.2 million.
The plan calls for the remaining three, including the troubled KRON, a MyNetworkTV station in San Francisco that Young paid a record $823 million for almost a decade ago (at the time it was a successful NBC affiliate, but Young did not renew the contract amid a dispute with the network), will continue under the management of Young President Deborah McDermott.
The order from the U.S. bankruptcy court called for Young’s current board of directors to be dissolved and reconstituted with five members. “Those members would include Vincent Young, current chairman-CEO-president of Young, two current board members and two new independent directors selected by the buyers and elected by the current board,” TVNEWSDAY reported.
The online broadcast news source went on to call the selection of Gray to manage most of the properties a coup for the Atlanta-based group, noting that Gray was one of five bidders for the management job.
WaPo Watergate editor Ben Bradlee dies; Clintons stump for Dems; Liberians stranded and more national and international news for Wednesday, October 22, 2014.
Wednesday's Blogs from the Bog!
Law firm unveils newly renovated 200-year-old building.
UL grad named web developer at BBR Creative
Lafayette-based emergency department staffing and management company raises $120 million in senior credit facilities through GE Capital, Healthcare Financial Services.
High-rise apartment building, parking garage, hotel and retail part of new development.
A common thread runs through many of those we oppose: Enshrining in the Constitution protections on programs and their funding sources has had a disastrous effect on Louisiana’s most important economic development engine.
"I am extremely disheartened by the political machines that are attempting to hijack my efforts along with others that advocate for children."
Landrieu, who is fighting to keep her seat for a fourth term, said that Ebola is serious and precautions should be taken, but she accused Republicans of using the virus outbreak in West Africa to "create fear" here at home.
The number of Louisianans with jobs continued to set records in September, but the state's unemployment rate kept rising as new job seekers keep entering the market.
Three bedroom cottage or three bedroom ranch
Sheer lace perfection
Acadiana's nightlife guide.
Louisiana is drowning, quickly.
Law enforcement agencies are participating in a "Louisiana Heroin Summit," designed to address the recent rise in heroin use and drug-related deaths around the state.
State education officials are preparing to release performance scores for public schools and public school districts.
Saints coach Sean Payton is starting a new week by emphasizing, repeatedly, the many good things he noticed during New Orleans' latest loss.
We will be offering our recommendations on the constitutional amendments tomorrow.
Three bedroom in Lawtell or two bedroom in Rayne
Fall's new darling
The justices did not comment in leaving in place lower court rulings that dismissed the lawsuits against BP and other companies involved in the worst U.S. offshore oil spill.
White registration is down by 7,700 voters while black registration has shot up by 7,100 voters.
Even though it had been rumored for months, U.S. Sen. Mary Landrieu finally pulled the trigger recently on a major campaign shakeup that moved control over to a few Big Easy insiders.
Acadiana's nightlife guide.
Louisiana's health department says it will seek law changes to stop billing sexual assault victims for exams and tests.
An investment group led by Macquarie Infrastructure and Real Assets will buy the Louisiana power company Cleco for $3.4 billion.
It wasn’t the historic slashes to higher ed funding or the ensuing tuition spikes that recently had LSU’s student body and faculty riled up in collective outrage.
"I feel it is appropriate to speak up when there are topics that are being bandied about with little or no factual data to back them."
Will $400 be enough for the re-election campaign of LPSB's Hunter Beasley to overcome two years of holding our school system hostage and hurting the education of our children all because of a personal dislike of the superintendent?
Saints tight end Jimmy Graham said Friday he expects his playing status in Detroit to be decided by coach Sean Payton on Sunday, shortly before the game.