Marshall Broadcasting seeks court approval of settlement with Nexstar

By Sarah Lizee

Olympia, Wash., Nov. 9 – Marshall Broadcasting Group, Inc. is seeking court approval of a settlement agreement with Nexstar Broadcasting, Inc., according to an emergency motion filed Friday in the U.S. Bankruptcy Court for the Southern District of Texas.

Marshall and Nexstar have litigated their claims against one another for over a year and a half, in three forums, the company said.

After extensive litigation and good faith settlement negotiations, which included an unsuccessful judicial mediation earlier this year, Marshall, Nexstar and Marshall’s principal, Pluria Marshall, have reached a global resolution.

The debtors and Nexstar have negotiated a resolution of all disputes comprising the litigation and believe the settlement agreement is in the best interest of all parties, the motion said.

“First, the settlement resolves all of the disputes between the parties, the outcome of which is inherently uncertain, and which would otherwise be time consuming and expensive to litigate to judgment,” Marshall said.

“Second, the settlement will allow for all administrative claims to be paid, with a significant distribution to holders of general unsecured claims (other than Nexstar, which shall withdraw its claims as part of the settlement).”

Under the terms of the settlement agreement, Nexstar will pay $2.25 million to Marshall.

Marshall is a Houston-based broadcasting company. The company filed bankruptcy on Dec. 3, 2019 under Chapter 11 case number 19-36743.

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