Michael Malone of Broadcasting & Cable reports that Young Broadcasting has called off the auction of its assets — including KRON 4 — without comment. Malone said that insiders believe the development means the bids did not meet the minimum. Chairman Vincent Young had anticipated strong interest in the stations that also include 10 network affiliates in the Midwest.
Broadcasting & Cable’s Michael Malone says he was told by a source that H.I.G. Capital (link for more information abougt them) is looking like the favorite to scoop up the bankrupt Young Broadcasting stations including KRON 4. Malone also notes that when you Google “KRON,” the first link says its an NBC affiliate. Of course NBC dropped KRON at the end of 2001.
Michael Malone of Broadcasting & Cable reports that Friday was the deadline to submit bids for Young Broadcasting and its 10 stations, including KRON 4. The winning bidder is scheduled to be selected on Monday, with the announcement presumably coming some days later. Rumored suitors include billionaire Robert Bass’s venture capital company Oak Hill Partners, whose Local TV unit is comprised of 16 stations including WJW Cleveland, KTVI St. Louis, WBRC Birmingham, WHO Des Moines and KDVR Denver. Another suitor
Michael Mechanic of Mother Jones says KRON is blurring the line between advertising and news. He says the station contacted a lawyer friend of his and offered to sell her air time. She was told she would appear as legal expert on what looks like a news program. The segment would have only a brief disclosure that it was advertising. Mechanic writes, “When the old media turns to obvious desperation measures, I just can’t help pondering the future of my
A newspaper in Tennessee reports that the parent company of KRON 4 will be sold at an auction on July 14. The Nashville Tennessean quotes attorneys at the firm Sonnenschein Nath & Rosenthal as saying Young Broadcasting will be sold or reorganized as a whole. The law firm says there has been a “healthy amount of interest” in the auction, being undertaken at secured lenders’ insistence. Young Broadcasting filed for Chapter 11 in February, listing total assets at about $574.6
Account executives Juliana Kim and Danielle Dudum have jumped from KRON4 to CBS5/CW44. They’ll each have the title of Business Development Account Executive.
With KRON 4 owner Young Broadcasting entering Chapter 11, the spotlight has shifted to the company’s creditors, the people who are really in charge. RBR.comTVBR.com posits an interesting theory. A group called Silver Point Capital apparently owns a substantial piece of Young’s debt. Silver Point Capital also acquired Granite Broadcasting, owner of KOFY 20, through the bankruptcy process. “If we were running Silver Point, which we’re not, we would certainly have some interest in exchanging our big chunk of Young’s
Young Broadcasting, whose financial condition has gone downhill since it paid a record $823 million for KRON Channel 4 in 1999, has voluntarily filed for Chapter 11 bankruptcy court protection while it reorganizes its finances. The operator of 10 stations says it plans to keep all of them on the air during bankruptcy proceedings. The move comes a month after Young was kicked off the Nasdaq stock exchange after its share price had fallen into penny-stock range. The company had
Nasdaq yesterday dropped Young Broadcasting, the parent of KRON-TV, from the stock exchange after it became a penny stock. Young said it is working to get its stock listed on the over-the-counter exchange. Young, which skipped a $6.1 million interest payment Jan. 15 on notes due in 2014, is struggling to reorganize and has been warning of a bankruptcy filing since November. Young owns nine other stations, all network affiliates in small- and medium-sized markets.
KRON owner Young Broadcasting said yesterday it would skip a $6.125 million interest payment to keep from going under [news release]. The payment, due Jan. 15, was on the company’s 8.75 percent senior subordinated notes due 2014. Young is holding off until it can restructure its $821 million in debt (a figure accurate as of the end of last September). Bloomberg points out that Young is a casualty of the credit crisis that choked off lending following Lehman Brothers’s bankruptcy