Operator of 14 US TV stations files for bankruptcy
WILMINGTON, Del., July 14 (Reuters) - NV Broadcasting, which operates 14 U.S. television stations, filed for bankruptcy and plans to turn the company over to lenders to cut its roughly $410 million in debt.
Five of the Atlanta-based company's stations are affiliated with CBS, two with NBC, two with ABC and four with Fox, according to court documents filed late Monday.
NV Broadcasting operates in markets ranging from Portland, Oregon, the country's 22nd largest, to Bend, Oregon, which ranks No. 192. Standard & Poor's cuts the company's credit rating in April, noting it was suffering from a drop in revenue due to the recession and a decline in campaign spending in a nonelection year.
NV Broadcasting's bankruptcy follows the February filing by Young Broadcasting Inc, which owns 10 stations and had nearly a $1 billion in debts.
Hedge fund HBK Capital of Dallas owns, through various affiliates, a majority stake in NV Broadcasting.
The company's lenders agreed to provide it up to $30 million to fund its bankruptcy, but required the company to have court approval for its plan of reorganization within 90 days.
The company plans to transfer most of the equity in a restructured company to a syndicate of financial institutions that hold $270 million of secured debt.
In addition, the company plans to transfer a small stake in its post-bankruptcy equity, along with warrants, to financial institutions that hold roughly $95 million in second-lien debt.
The company employs 720 people.
The case is In re: NV Broadcasting LLC, U.S. Bankruptcy Court, District of Delaware, No. 09-12473. (Reporting by Tom Hals; editing by Andre Grenon)
