Tuesday, January 20, 2009

KRON owner skips interest payment

KRON owner Young Broadcasting said yesterday it would skip a $6.125 million interest payment to keep from going under [news release]. The payment, due Jan. 15, was on the company’s 8.75 percent senior subordinated notes due 2014. Young is holding off until it can restructure its $821 million in debt (a figure accurate as of the end of last September). Bloomberg points out that Young is a casualty of the credit crisis that choked off lending following Lehman Brothers’s bankruptcy filing in September. "About 450 companies and units have filed for bankruptcy court protection this year, more than double the 222 in the same period last year, data compiled by Bloomberg show," Bloomberg reports.

1 comment:

Anonymous said...

What?!? Didn't Young Broadcasting consult with KRON's financial genius Rob Black?

Perhaps a five-year ARM with a zero interest teaser, brokered by some of Black's mortgage buddies, would have bridged Young's financing gap.