Newspaper article THE JOURNAL RECORD

Kocb Plans to Pay Creditors in Full

Newspaper article THE JOURNAL RECORD

Kocb Plans to Pay Creditors in Full

Article excerpt


By Darrell Morrow Feature Editor A bankruptcy reorganization plan has been approved for Oklahoma City Broadcasting Co., owner of KOCB Channel 34, that is anticipated to pay most creditors in full, plus interest, and the station has already begun work to strengthen its operations.

"We saved a business and 38 jobs. I know it is not 5,000 jobs, not enough to raise taxes over, but it is 38 jobs. The people of Oklahoma still have another entertainment channel and the advertisers still have another place to advertise. I think we did well," said Ted Baze, owner, president and general manager of the station.

Baze announced promotions of the station's key executives to vice presidential status and the hiring of Sammye Ctwo-year bankruptcy reorganization period.

Three vice presidents were named. Greg Miller was promoted to senior vice president and director of engineering. T. Dan Loving was named vice president and director of sales. Glen Parker was named vice president and director of business affairs, Baze said.

Culbert previously worked for the Bill Price for governor campaign and at KWTV Channel 9.

No immediate programming changes are anticipated, Baze said.

Baze said the reorganization plan calls for the station to pay all of its secured debts within 21 months based on anticipated cash flow.

The reorganization plan approved by a majority of creditors and Judge John TeSelle of Bankruptcy Court of the Western District of Oklahoma Friday calls for payment of about $7.4 million to 14 creditors. All payments are proposed to be made in installments and completed by June 1999.

The secured debt, mostly to repay financing loans from NCNB Texas National Bank, is about $3.8 million. Largest of the creditors is NCNB Texas National Bank. Remainder of the $7.4 million is unsecured and for long-term contracts. It is primarily for programming services for future use and for which payment normally is made as the services are used, Baze said.

The plan adopted was the fourth amended plan of reorganization proposed by the station. The Texas bank rejected previous restructuring proposals, but accepted the fourth plan, court files state.

Payment of $1.1 million of the bank's claim, for interest and legal fees since the bankruptcy filing, would be required only if KOCB-TV stock were sold or a "market reduction" occured within seven years. The market reduction was defined as any six-months period when no more than two independent television stations, including KOCB-TV, serve the Oklahoma City metropolitak are KOCB Channel 34, KOKH Channel 25, and KAUT Channel 43.

Reduction of the number of independent stations could theoretically increase KOCB's market share and increase its income. …

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