RAPID CITY - KEVN Inc., the parent company of KEVN FOX-7 TV in Rapid City, has emerged from Chapter 11 protection.
The U.S. Bankruptcy Court has approved KEVN's plan of reorganization.
The company's owner filed for reorganization under Chapter 11 of the U.S. Bankruptcy Code in 2003 to fend off legal action by one of the station's largest creditors.
William Reyner Jr. of Santa Barbara, Calif., is president and primary owner of KEVN Inc. His limited liability company, Mission TV, acquired the Rapid City station from USA Broadcasting in 1998.
At the time of the Chapter 11 filing, Finova Capital of Scottsdale, Ariz., held $5 million in mortgages and liens on KEVN Inc.'s real estate, building and equipment.
"While the station remained cash-flow positive, its major lender accelerated the due date of the repayment of its loan and commenced a proceeding in federal court to take over the operations of the stations," KEVN said in a news release Tuesday.
The Chapter 11 filing allowed KEVN-TV to continue in business while it developed a reorganization plan acceptable to its creditors.
"We are very happy to have this behind us. The fact that the station has done well and turned the corner to success tells a wonderful story of a dedicated staff that would not cave in under these pressures," Reyner said in the news release. "I am very proud to have the honor of being associated with KEVN and its fine team."