Area station owner restructures, leaves bankruptcy

By DON SHILLING

VINDICATOR BUSINESS EDITOR

The Los Angeles company that controls four area television stations has emerged from bankruptcy protection.

New Vision Television said it completed its restructuring this week by providing stock in the company to creditors who had loaned it money.

The creditors also will gain representation on the board of directors, but Jason Elkin will remain chairman and chief executive.

Locally, New Vision owns WKBN-TV and WYFX, both of Boardman, and operates WYTV and MyYTV, both of Youngstown, under an agreement with another Los Angeles-based company.

New Vision entered bankruptcy protection July 13 because it was unable to meet its debt payments. The three-year-old company said it borrowed heavily to finance its expansion but ran into financial troubles because of the recession.

New Vision’s restructuring plan, which was approved by a bankruptcy court judge Sept. 10, eliminated $400 million in debt. All major creditors supported the deal.

Elkin said the company now has significant working capital and a solid balance sheet.

“Being debt-free will enable us to invest in our people, our product and complementary acquisitions to drive New Vision forward,” he said.

Elkin said the company maintained all jobs and benefits during the bankruptcy.

It owns or operates 14 network-affiliated stations in seven states and three other stations that aren’t part of the major networks.

Elkin and other managers led two other television companies before forming New Vision in 2006.

The company acquired WKBN-TV and WYFX from Piedmont Broadcasting of Charlotte, N.C., in 2007.

Later that year, it reached a shared- services agreement with Parkin Broadcasting, which had bought WYTV and MyYTV. The agreement allows New Vision to produce WYTV newscasts with workers from its other local stations.

shilling@vindy.com