Young Broadcasting ownership transfers to former senior lenders

By Caroline Salls

Pittsburgh, June 24 - Young Broadcasting Inc.'s ownership transitioned Thursday to a shareholder group comprised of former senior lenders from the shareholders of the publicly traded company, according to a company news release.

Having shed nearly $800 million in debt and millions of dollars of burdensome contracts through the bankruptcy process, the company said new Young Broadcasting is emerging from bankruptcy as the most financially sound company in television broadcasting.

As previously reported, Young's plan of reorganization was confirmed on April 19 by the U.S. Bankruptcy Court for the Southern District of New York.

Treatment of creditors under the company's plan 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.

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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