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Young's Post-Chapter 11 Future Uncertain

TVNewsCheck, Wednesday, June 16, 2010 11:30 PM

As the Young Broadcasting bankruptcy claws its way toward a conclusion, employees of the 10-station group are wondering just who's in charge. "We're still on hold," said Robert Prather, president-COO of Gray, who had expected to manage the group. "The lawyers are telling us to let the litigation play out. We've not been involved in day-to-day stuff for a couple months." Still, Gray is collecting on its estimated $2.2 million annual management contract.

By early last fall, everything appeared to be on track. But unsecured creditors, unhappy with the proposed reorganization plan, countered with their own plan, which sent Gray to the sidelines. David Pauker, Young's former chief restructuring officer and managing director at Goldin Associates, is optimistic about a near-term Chapter 11 exit. "Young expects to emerge from bankruptcy within the next 30 to 60 days, following FCC approval of Young's pending license application [by the FCC]," he said.

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