Owners of KMSS and KSHV Told to Sell Some of its Stations Under Bankruptcy Reorganization Plan
Communications Corp. of America, the parent company of KMSS/Shreveport, and White Knight Broadcasting, parent company of KSHV/Shreveport have been told by a bankruptcy court to sell some of their stations. Below is a excerpt from an article from The Advocate:
Bankruptcy court records show Communications Corp. of America and White Knight Broadcasting hope to raise as much as $100 million by selling two or three of the companies’ 23 TV stations in Louisiana, Texas and Indiana.
“It’s more likely that the sale will generate $75 million to $80 million,” said William Patrick III, the attorney for Communications Corp.
Among its holdings, White Knight owns WVLA-TV Channel 33 and independent KZUP-TV Channel 19 in Baton Rouge.
Communications Corporation of America owns Fox affiliate WGMB-TV Channel 44 and WBRL-TV Channel 21 in Baton Rouge and Fox affiliate KADN-TV Channel 15 and KLAF-TV Channel 17 in Lafayette.
The companies say they operate independently but say the firms are connected through a variety of arrangements, including sharing service agreements. In addition, Communications Corporation provides accounting and billing services for White Knight.
By selling the stations, the companies will be able to reduce the $230 million owed senior lenders to a manageable level, Patrick said. The companies can then refinance the remaining debt or work with another lender to take on the secured debt.