Young Broadcasting files plan; lenders to get new notes and stock

By Caroline Salls

Pittsburgh, Sept. 25 - Young Broadcasting Inc. filed its plan of reorganization Thursday with the U.S. Bankruptcy Court for the Southern District of New York.

Holders of pre-bankruptcy lender claims will receive new notes, common stock and warrants in exchange for their claims.

In addition, noteholders will also receive warrants if they vote to accept the plan.

Under the plan:

• Holders of administrative expense claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of pre-bankruptcy lender claims will receive a share of new holding company notes, new holding company common stock and holding company warrants;

• Holders of other secured claims will receive either the collateral securing their claim or cash or have their claim reinstated;

• Holders of noteholder claims will receive warrants if they vote to accept the plan or no distribution if they vote to reject the plan;

• Holders of general unsecured claims will receive a share of a $1 million one-time cash distribution; and

• Holders of equity interests and intercompany interests will receive no distribution.

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.

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