Creditors' Plan Would Hand Young To Noteholders

Law360, New York (October 12, 2009, 7:15 PM EDT) -- Young Broadcasting Inc.'s unsecured creditors have filed a plan of reorganization challenging the company's plan to sell its assets to its senior lenders for $220 million, proposing instead to reinstate the lenders' debt and sell substantially all of the equity in the reorganized company to its noteholders through a rights offering that would raise $38 million in new capital.

Under the committee's plan, filed Friday in the U.S. Bankruptcy Court for the Southern District of New York, Young's prepetition lenders, led by Wachovia Bank NA, would...
To view the full article, register now.
Law360 Pro Say Podcast
Check out Law360's new podcast, Pro Say, which offers a weekly recap of both the biggest stories and hidden gems from the world of law.