Young Broadcasting files for Chapter 11
Young Broadcasting Inc., owner of 10 television stations affiliated with the CBS and ABC networks, said Friday that it had filed for Chapter 11 protection in U.S. Bankruptcy Court in the Southern District of New York.
The New York company said it would continue to operate the stations without interruption.
“Our decision to restructure through a Chapter 11 filing will allow the company to bring its debt in line with current economic realities so that we can emerge a stronger and more financially secure company,” Chairman Vincent Young said in a statement.
Young has one station in California, KRON-TV in San Francisco.
TV broadcasters in the U.S. are under pressure as the economic downturn sends advertising revenue plummeting. Credit rating agency Moody’s Investors Service warned last week that broadcasters entered the recession with high levels of debt and already were struggling to retain audiences as more customers turn to portable gadgets and the Web for entertainment.
Broadcasters also are facing tough times without must-see television such as major political campaigns or the Olympics.
On Thursday, the country’s fourth-largest cable operator, Charter Communications Inc., said it expected to file for bankruptcy protection by April 1.