07.14.2009 01:30 PM
Young Broadcasting Auction Cancelled
NEW YORK: Attorneys for Young Broadcasting cancelled the asset auction scheduled for today. Jo Christine Reed of Sonnenschein, Nath & Rostenthal, LLP filed a Notice Cancellation of Auction with the U.S. Bankruptcy Court for the Southern District of New York, dated July 13.
“The Debtors, pursuant to the terms of the Bidding Procedures Order, have determined that the Auction is not necessary and hereby provide notice that the Auction is cancelled.” No further information on the cancellation was provided.
Young filed for Chapter 11 in February after defaulting on $10.6 million in interest payments. The company listed assets of $575.6 million versus $980.4 million in debt. When the auction date was scheduled, Young’s attorneys said there was a “healthy amount of interest” in the assets. B&C said two private equity concerns among prospective shoppers--HIG Capital and Oak Hill Capital.
A hearing is scheduled for tomorrow, noon Eastern, on Young’s contracts for airing “Entertainment Tonight” and the “Insider,” court documents indicate. Young will also update the court on how it plans to proceed.
-- Deborah D. McAdams
More TVB coverage of Young’s Chapter 11 odyssey:
July 2, 2009: “Young Broadcasting Auction Date Set”
The assets of Young Broadcasting will be put on auction July 14 in New York. Sonnenschein, Nath & Rosenthal, the law firm representing Young, told the media outlet there was a “healthy amount of interest” in the auction. Young owns 10 TV stations, including WKRN-TV, the ABC affiliate in Nashville, Tenn.
March 4, 2009: “Young Files for Chapter 11”
“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. It is important to note that we are restructuring our debt, not our operations,” said Vincent Young, YBTVA chairman.