The struggling group owner says it will “forego” the $4.5 million interest payment “to preserve liquidity.”
Young Broadcasting Inc. announced today that, as part of a strategy to preserve liquidity, it will forego making the $4.513 million interest payment due Feb. 6 on the company’s Senior Secured Credit Facility due 2012. Under the terms of the facility, a 10-day grace period will apply to the missed interest payment.
As previously disclosed, Young Broadcasting continues to pursue discussions with its debtholders to restructure its balance sheet, improve liquidity, and strengthen its business operations to enhance its value for its employees, viewers, advertisers and local communities.
The company said it does not anticipate that these discussions will affect the operations of its stations or its ability to pay its trade creditors in the ordinary course.