Bankruptcy
On May 10, 2008, thirteen of Pappas' stations filed for Chapter 11 Bankruptcy protection. Pappas cited "the extremely difficult business climate for television stations across the country" in papers filed with the U.S. Bankruptcy Court in Wilmington, Delaware. The company reported in court filings that it has more than $536 million in debt and $460 million in assets. Problems that led to bankruptcy included poor performance of The CW network, its now-former involvement with Azteca America, and preparations for the 2009 analog shutdown. Stations involved in the bankruptcy are KMPH-TV, KFRE-TV, KPTM, KXVO, WCWG, KPTH, KMEG, KTNC-TV, KAZH, KDBC-TV, KREN-TV, KAZR-CA and KCWK. It was later ordered on September 10, 2008 that the affected stations must be sold off by February 15, 2009. Its other stations, and the corporation itself, is not part of the bankruptcy.
On May 14, 2008, company founder Harry J. Pappas filed for Chapter 7 bankruptcy at the Delaware court, where a judge could order his personal assets sold to pay off creditors.
On May 27, 2008, KCWK in Walla Walla, Washington (in the Yakima, Washington television market) ceased operations as a result of the bankruptcy.
On September 17, 2008, bankruptcy trustee E. Roger Williams put KREN and its repeaters under contract to Entravision Communications for $4 million, which would double as a minimum bid for the station as it goes up for auction in late October.
On December 17, 2008, New World TV Group agreed to acquire the remaining Pappas stations involved in the bankruptcy filing. The sale was approved by the United States bankruptcy court on January 16, 2009.
KMPH Radio ceased operations September 1, 2010 due to lack of revenue. Two weeks later, KTRB went into receivership with Comerica Bank, under license from KTRB Trust. This marked the end of Pappas era.
Read more about this topic: Pappas Telecasting Companies
Famous quotes containing the word bankruptcy:
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—Henry David Thoreau (1817–1862)
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