Pappas Telecasting is looking for a $5 million loan while it goes through bankruptcy proceedings and seeks a buyer for its 30 TV and two radio stations. The U.S. Bankruptcy Court in Delaware gave Pappas the go-ahead July 3, according to The Fresno Bee
The newspaper said the money would come from lenders that include several Pappas creditors who forced the bankruptcy, filed in early May
. Thirteen of the 30 TV stations were covered in the filing, instigated by lenders owed $303 million and who bailed out on the sale effort.
Pappas put itself up for sale last December. The Dow Jones has reported that Pappas had more than $536 million in debt compared to $460 million in assets.
CEO and Founder Harry Pappas put $2 million in the company to keep the stations going while a sale was structured under the supervision of the court, according to published reports. The Fresno Bee
said the additional $5 million wasn“t imperative for continued station operations, but rather for a “reserve” while a buyer is found.
Pappas attributed its financial troubles on the duplicated cost of doing simultaneous digital and analog operations, as well as poor ratings on The CW network, though only five of the 13 stations under bankruptcy protection were CW affiliates.
The Pappas stations under Chapter 11 in U.S. Bankruptcy Court for the District of Delaware include CW affiliates KFRE-TV in Visalia, Calif., KXVO-TV in Omaha, Neb., WCWG-TV in Greensboro, N.C., KREN-TV in Reno, Nev., and KCWK-TV in Yakima, Wash.; Fox affiliates KPTM-TV in Omaha, KMPH-TV in Visalia and KPTH-TV in Sioux City, Iowa; CBS affiliates KMEG-TV in Sioux City and KDBC-TV in El Paso, Texas; and TuVisiÃ³n affils KTNC-TV in San Francisco, KAZH-TV in Houston and KAZR-TV in Reno.