Objections from the unsecured creditors have been rejected and Federal Bankruptcy Judge Arthur Gonzalez has signed an order approving the sale of Young Broadcasting’s TV stations. That also clears the way for Gray Television to begin managing most of the Young stations.
In his order signed on Tuesday (7/28) and filed Wednesday (7/29), Judge Gonzalez determined that UBS Securities had “diligently and in good faith” marketed the debtor’s assets to obtain the highest or best offer under the bidding procedures previously approved by the court. UBS had presented documentation that it contacted 69 potential buyers. In the end, that produced two solid, cash bids of $120 million and neither of those bidders was willing to match the credit bid of $220 million by Young’s secured lenders.
The judge’s order noted the objections by the Committee of Unsecured Creditors, but was not persuaded. He ruled that the proposed sale to the secured creditors was “in the best interests of the Debtors, their estates and creditors, and all other parties in interest.”
The reorganized Young Broadcasting will have five board members, including Vincent Young, two current members and two members recommended by the buyers. CEO Young, President Deborah McDermott and CFO James Morgan will continue to manage the company. However, most of their daily attention will likely be focused on KRON San Francisco, WATE Knoxville and WLNS Lansing, since the other seven markets will be under the new management contract with Gray Television.