Young Broadcasting, set to auction off its 10 stations this morning, has filed a Cancellation of Auction notice with the United States Bankruptcy Court.
According to the filing, "The Debtors, pursuant to the terms of the Bidding Procedures Order, have determined that the Auction is not necessary and hereby provide notice that the Auction is cancelled."
The filing was submitted by Peter D. Wolfson and Jo Christine Reed of the law firm Sonnenschein Nath & Rosenthal, which was to represent Young in the auction.
The law firm would not comment on the auction's cancellation.
Insiders believe the development means the bids did not meet the minimum. Chairman Vincent Young had anticipated strong interest in the stations, which include KRON San Francisco and WBAY Green Bay. "We believe that there will be an active and robust process on July 14 resulting in the improved capital structure the Company needs to complete its restructuring and exit Chapter 11 stronger, more competitive, and well-positioned to reap the benefits of the rebounding economy," he said in a company memo in late June.
Young entered Chapt. 11 in February.
A favorite to acquire the Young stations has been H.I.G. Capital. Oak Hill Capital was said to have some degree of interest too.
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