NEW YORK: The Young Broadcasting bankruptcy proceeding fired an internal dispute leading to an objection of the company’s legal counsel. According to Law360, a news wire service for business attorneys, an “estranged” relative of company chairman Vincent Young is appealing the court’s approval of Sonnenschein, Nath & Rosenthal LLP as the broadcaster’s bankruptcy counsel.
Thomas T. Allan Jr. and Helen Miodownik filed an appeal with the U.S. Bankruptcy Court fort he Southern District of New York in early April, 360 said. The filing said the law firm hadn’t been completely forthcoming about its involvement with young. Sonnenshein was said to be Young’s chief outside counsel from 2001 through 2007, and did some consulting work in 2008. Robert Winikoff, a Sonnenschein partner, was also a director for Young from 1998 to 2001. The bankruptcy judge ordered Winikoff to sell by March 31 any Young share he still held.
Allan’s dispute involves 15,000 shares of Young he says were held in a trust for him, for which the company says it has no record.
Young Broadcasting (Pink Sheets:YBTVA) filed for Chapter 11 in Feb. 13 after struggling for several months to juggle its debt, and after being delisted from the NASDAQ. The company intended to restructure that debt and continue operating its 10 TV stations. Young listed total assets of more than $575.6 million versus total debt of more than $980.4 million and publicly traded debt of $640 million.
Young skipped $4.5 million interest payment due Feb. 6, on a senior secured credit facility due 2012, and a $6.1 million interest payment due Jan. 15. The company's stock was dropped from the NASDAQ in January. -- Deborah D. McAdams
