Young Broadcasting, Inc., the parent company for WKRN-TV in Nashville and WATE-TV in Knoxville, has filed Chapter 11 bankruptcy. Operations at Young Broadcasting’s ten television stations across the country will continue as normal while the company restructures its debt.
Below is an excerpt from a letter to Young Broadcasting employees from Chairman Vince Young.
On Friday, February 13, 2009, we announced that in order to facilitate our balance sheet restructuing, we filed voluntary petitions for relief under Chapter 11 of the Bankruptcy Code in New York. We have more than 20 million dollars of cash on hand and plan to continue to operate our business in the ordinary course as we reorganize. Our television station will continue broadcasting without interruption, our employees will be paid as usual and our vendors and suppliers will be paid for all post-petition goods and services.
Chapter 11 bankruptcy is a tool to enable us to restructure our debt and strengthen our business so that we can better navigate the current challenging economic environment and compete in the marketplace effectively. Our company generates significant profits, but those profits are not sufficient to support all of our debt. While we are in Chapter 11 bankruptcy, we will negotiate with our lenders and creditors to restructure and reduce our debt. We took this decisive action to make us a stronger and more financially secure company.
- Young Broadcasting press release - February 13, 2009
In the news:
NIT
News