[opendtv] News: 13 Pappas Stations File Chapter 11

[Craig Birkmaier <craig@xxxxxxxxx>]

As if to confirm the NBC story that local stations are seeing 
declining revenues...
and why.

http://www.broadcastingcable.com/article/CA6559866.html?display=Breaking+News&referral=SUPP&nid=2228

13 Pappas Stations File Chapter 11

Pappas Telecasting Stations File for Bankruptcy Protection

By John Eggerton -- Broadcasting & Cable, 5/12/2008 10:55:00 AM

An unlucky 13 Pappas Telecasting TV stations, including Fox, CBS and 
The CW affiliates, filed for bankruptcy protection, the company said 
Saturday after the largest privately held group in the country could 
not come to terms with what it described as mostly non-bank lenders.
Pappas, which said the move did not affect its other stations, blamed 
the Chapter 11 filings on tough financial markets and an inability to 
get new or replacement financing, although it maintained that many of 
the stations' revenue and ratings have outperformed the industry.
Chief operating officer Dennis Davis explained in an announcement of 
the filing that ad revenues were hit hard by the "extraordinary 
downturn in the housing market (affecting advertising budgets in the 
furniture, appliance, real estate and other related sectors) and 
increased energy costs, leading to reduced automotive advertising."
The company said station employees would continue to be paid and it 
would be "business as usual."
In a statement, chairman Harry Pappas said the company was 
"compelled" to make the move "as the conflicts with the mostly 
non-bank lenders allowed no other sensible option. We negotiated in 
good faith for several months and, when talks permanently broke down, 
we made the filing to protect our ability to serve our viewers, our 
advertisers and assure the interests of our employees, and, as 
important, the interests of our lenders."
He continued, "The Chapter 11 filing allows time for a so-called plan 
of reorganization to be adopted and implemented to lead to resolution 
of the financing issues as it applies to the stations financed by the 
mostly non-bank lenders."
The stations filing for bankruptcy were KMPH-TV (Fox) and KFRE-TV 
(CW), both Fresno-Visalia, Calif.; KPTM-TV (Fox) and KXVO-TV (CW), 
both Omaha, Neb.; WCWG-TV (CW) Greensboro-Winston-Salem-Highpoint, 
N.C.; KPTH-TV (Fox) and KMEG-TV (CBS), both Sioux City, Iowa; KTNC-TV 
(TuVisión) San Francisco-Oakland-San Jose, Calif.; KAZH-TV (TuVisión) 
Houston; KDBC-TV (CBS) El Paso, Texas; KREN-TV (CW) and KAZR-TV 
(TuVisión), both Reno, Nev.; and KCWK-TV (CW) 
Yakima-Pasco-Richland-Kennewick, Wash.
Pappas has been shopping some of its stations, with Harry Pappas 
saying he wanted to spend more time with his family.

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[opendtv] News: 13 Pappas Stations File Chapter 11