Home Miami TV WPEC-TV Parent Company Files Bankruptcy; Everyone Takes 5 Percent Pay Cut

WPEC-TV Parent Company Files Bankruptcy; Everyone Takes 5 Percent Pay Cut

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Freedom Communications, WPEC’s parent company, filed for Chapter 11 bankruptcy protection last week.

Freedom CEO Burl Osborne says this is “…positive news for the company and all of our associates…”. The Orange County Register newspaper reports that Freedom Communications owes $770 million to JP Morgan, SunTrust Banks and Union Bank of California. The Blackstone Group and Providence Equity Partners hold 40% of the company which they acquired five years ago for about $460 million. The majority ownership of the company is owned by the Hoiles family.

In July 2009 company-wide cost-cutting measures were taken and all employees took a 5% pay cut. According to the company all of its TV stations, of which WPEC is the biggest, and dozens of newspapers it owns will continue operating as usual while the restructuring process takes place.

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