05.15.2008 11:23 PM
Pappas Files for Chapter 11
Pappas Telecasting filed for bankruptcy protection for 13 of its 30 TV stations in early May. Executives at the company cited differences with lenders, owed $303 million, no longer willing to support the effort to sell the station group.
Dow Jones reported that Pappas had more than $536 million in debt compared to $460 million worth of assets.
Poor ratings on The CW network were also blamed for the company’s financial straits. (Five of the 13 stations put into Chapter 11 were CW affiliates.) The costs associate with running simultaneous analog and digital operations was also listed as a factor.
Pappas stations under Chapter 11 in U.S. Bankruptcy Court for the District of Delaware include CW affiliates KFRE-TV in Visalia, 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; and TuVisiÃ³n affils KTNC-TV in San Francisco, KAZH-TV in Houston and KAZR-TV in Reno.
CEO and Founder Harry Pappas reportedly offered to put up $2 million to keep the stations operating while a sale is being structured under the supervision of the court.