Young Broadcasting skips $6.125 million interest payment on 8¾% notes

By Jennifer Lanning Drey

Portland, Ore., Jan. 16 - Young Broadcasting Inc. will forgo making the $6.125 million interest payment due Thursday on the company's 8¾% senior subordinated notes due 2014 as part of its strategy to preserve liquidity, the company said in a Friday news release.

Under the indenture related to the notes, the company has a 30-day grace period to make the payment.

The company said it intends to pursue discussions with its debt holders to restructure its balance sheet, improve liquidity and strengthen its business operations to enhance value.

Young has retained UBS Investment Bank and Sonnenschein Nath & Rosenthal LLP to provide advisory services in connection with the restructuring efforts.

The company does not expect the discussions to impact operations of its stations or its ability to pay its trade creditors in ordinary course.

New York-based Young Broadcasting owns 10 television stations and the national representation firm Adam Young Inc.

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