Young Broadcasting requests court approval to simultaneously pursue plan investment or sale

By Jennifer Lanning Drey

Portland, Ore., March 23 - Young Broadcasting Inc. requested court approval to simultaneously solicit bids for an investment in the company's plan of reorganization or in connection with a sale of its assets, according to a Friday filing with the U.S. Bankruptcy Court for the Southern District of New York.

Young said it believes it to be in the best interests of its estates and creditors to pursue a dual-track process that concurrently solicits bids for either a potential refinancing or equity investment in its plan or the sale, as a going concern, of all or a part of its businesses and/or assets.

Under the proposed bidding procedures, prospective stalking horse bids are due by 4 p.m. ET on April 6. The company said it would look to select a stalking horse bid by April 20.

If a stalking horse bid is selected, competing bids will be due by 4 p.m. ET on June 19.

Young requested court approval to pay up to a 3% break-up fee if the selected stalking horse bidder is not the high bidder.

If competing bids are received, the company has asked that an auction be held June 19.

A hearing on the bid procedures is scheduled for April 2.

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. Its Chapter 11 case number is 09-10645.

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