Young Files for Chapter 11

(Feb. 16, 2009)NEW YORK: Young Broadcasting has filed for Chapter 11 after struggling for several months to juggle its debt. The company plans to restructure its debt and continue operating its 10 TV stations “without interruption” it said in a release.

Young (Pink Sheets:YBTVA) and its subsidiaries filed Feb. 13 with the U.S. Bankruptcy Court for the Southern District of New York. In its voluntary filing, 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. As of Feb. 11, YBTVA had nearly 21.9 million outstanding A shares held by 99 investors, and more than 1.9 million class B shares held by 49 investors.

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 for not maintaining the minimal requirements.

“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.

Young set up a toll-free hotline at 866.212.0222 for employees, viewers, advertisers and others seeking information about the reorg.

Young owns Adam Young Inc., a national TV rep firm, in addition to its 10 stations:
Five ABCs
WKRN-TV in Nashville, Tenn.
WTEN-TV in Albany, N.Y.
WRIC-TV in Richmond, Va.
WATE-TV in Knoxville, Tenn.
WBAY-TV in Green Bay, Wis.
Three CBS affils
WLNS-TV in Lansing, Mich.
KLFY-TV in Lafayette, La.
KELO-TV in Sioux Falls, S.D.
KWQC-TV in Davenport, Iowa
One MyNetwork
KRON-TV in San Francisco, Calif.