Channel 6 files receivership petition, expected to continue operations

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PROVIDENCE – Global Broadcasting of Southern New England, doing business as WLNE-TV, ABC 6, filed a receivership petition in Superior Court today, but the attorney for the Providence-based television station said it is not likely Channel 6 will go out of business.

“We are almost certain [the television station] will not close,” Allan M. Shine, of Winograd, Shine & Zacks, attorney for the television station, told Providence Business News. “We expect no interruption in business. We will continue to do business with our advertisers, our customers and continue our programming.”

He explained that the receivership proceeding will allow the station to stabilize its finances. The court has appointed Providence attorney Matthew McGowan as receiver. Shine said McGowan has been authorized by the court to operate Channel 6 without interruption in its programming or daily operations. He said Sovereign Bank, a major creditor, supports the receivership process.

Eventually, Shine said, once finances has been stabilized, he expects that Channel 6 will be offered for sale and marketed widely.

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The station employs 88 people. Shine said adequate funding is available “to make sure everyone is paid on time.”

With the downturn in the economy, Channel 6 “like virtually all television and media businesses, has experienced a decline in revenue,” according to a prepared news release from Shine’s Providence office. “That business downturn has put unexpected pressure on its ability to service its secured debt.”

Shine said creditors have been or will be notified of the receivership process, and he expects that they will in general be supportive of any restructuring or reorganization required by the court.

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