Young Broadcasting files plan based on $200 million credit bid

By Caroline Salls

Pittsburgh, Oct. 9 - Young Broadcasting, Inc. filed its plan of reorganization and related disclosure statement Friday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, holders of pre-bankruptcy lender claims will receive a distribution of $75 million face amount of five-year senior secured holding company notes, which will accrue interest at a rate of Libor plus 500 basis points.

Young Broadcasting said the lenders' $200 million credit bid has been selected as the prevailing bid for substantially all of the company's assets.

Holders of noteholder claims will receive warrants to purchase up to 2.5% of the equity interests of the reorganized company.

The warrants will mature in 2½ years, will have a $125 million spot price and will have a $225 million strike price.

Treatment of creditors will include:

• Holders of priority non-tax claims will recover 100% in cash;

• Holders of pre-bankruptcy lender claims will recover 59.7% through a share of new holding company notes, holding company common stock and/or warrants;

• Holders of other secured claims will recover 100% either in cash or through the return of the collateral securing the claim;

• Holders of noteholder claims will recover 0.4% in warrants;

• Holders of general unsecured claims will recover 5.1% through a share of $1 million in cash;

• Equity interests will be deemed cancelled; and

• Holders of intercompany interests will receive no distribution, although these interests will remain unaltered.

The disclosure statement approval hearing is scheduled for Nov. 5, and the plan confirmation hearing will be held on Dec. 21.

New York-based Young Broadcasting owns 10 television stations and the national representation firm Adam Young Inc. The company filed for bankruptcy on Feb. 13, 2009. Its Chapter 11 case number is 09-10645.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.