The court-appointed bankruptcy trustee in the Pappas Telecasting case now has the FCC licencee for the two Reno stations that Pappas owned, and is trying to sell them.
Entravision has agreed to pay $4-million for full power CW affiliate KREN and its low power TuVision sister, KAZR-CA, if there aren't other bidders who raise the price in an October auction, according to broadcast website TV Newsday:
http://www.tvnewsday.com/articles/2008/09/19/daily.3/
Entravision agreed to invest up to $700,000 to complete the digital transmission chain for the stations so they aren't dark after the Feb. analog switchoff deadline. Important to preserve value.
If other bidders bid more than Entravision's $4-million, it can raise its bid. If it loses out, it gets a break up fee and expenses.
What's interesting is that the bankrupt chain moved up the income ladder AFTER the bankruptcy filing. TVnewsday says it went fron 38th to 25th largest TV station group based on income. T0 $176 million, up from 89 million, according to BIAfn.
Elsewhere on the Pappas legal front.
Court papers reviewed by a broadcasting website reveal a different side to the Pappas Telecasting bankruptcy.
http://www.tvnewsday.com/articles/2008/09/24/daily.7/
TV Newsday reports:
Most of the debt is held by a group of lenders led Fortress Credit Corp. that lent Pappas $284 million in March 2006 and are battling to get their money back.
Fortress says in court filings that it gave Pappas and the company every break, letting them go five months without paying interest, overlooking broken loan covenants, allowing Harry Pappas to retain operational control of his companies, engaging in "endless negotiations."
In return, Fortress says, "Pappas repeatedly balked to extract personal gain from the Lenders."
Their biggest complaint: Pappas schemed to take $2 million owed the creditors, dress it up as debtor-in-possession (DIP) financing, and lend it to his own bankrupt company. In return, he would have received administrative fees and expenses for providing the financing.
That, Fortress says, "demonstrates the virtual boundlessness of Pappas's deceit."
The website reports that few people—including Pappas—would go on the record for the story.
Entravision has agreed to pay $4-million for full power CW affiliate KREN and its low power TuVision sister, KAZR-CA, if there aren't other bidders who raise the price in an October auction, according to broadcast website TV Newsday:
http://www.tvnewsday.com/articles/2008/09/19/daily.3/
Entravision agreed to invest up to $700,000 to complete the digital transmission chain for the stations so they aren't dark after the Feb. analog switchoff deadline. Important to preserve value.
If other bidders bid more than Entravision's $4-million, it can raise its bid. If it loses out, it gets a break up fee and expenses.
What's interesting is that the bankrupt chain moved up the income ladder AFTER the bankruptcy filing. TVnewsday says it went fron 38th to 25th largest TV station group based on income. T0 $176 million, up from 89 million, according to BIAfn.
Elsewhere on the Pappas legal front.
Court papers reviewed by a broadcasting website reveal a different side to the Pappas Telecasting bankruptcy.
http://www.tvnewsday.com/articles/2008/09/24/daily.7/
TV Newsday reports:
Most of the debt is held by a group of lenders led Fortress Credit Corp. that lent Pappas $284 million in March 2006 and are battling to get their money back.
Fortress says in court filings that it gave Pappas and the company every break, letting them go five months without paying interest, overlooking broken loan covenants, allowing Harry Pappas to retain operational control of his companies, engaging in "endless negotiations."
In return, Fortress says, "Pappas repeatedly balked to extract personal gain from the Lenders."
Their biggest complaint: Pappas schemed to take $2 million owed the creditors, dress it up as debtor-in-possession (DIP) financing, and lend it to his own bankrupt company. In return, he would have received administrative fees and expenses for providing the financing.
That, Fortress says, "demonstrates the virtual boundlessness of Pappas's deceit."
The website reports that few people—including Pappas—would go on the record for the story.
