KTUD files Chapter 7 bankruptcy petition

KTUD, the former over-the-air TV station owned by an affiliate of the Greenspun Corp., has filed a Chapter 7 bankruptcy liquidation.

According to court papers filed Friday, the parent company VegasTV LLC lists $908,000 in assets and $1.14 million in liabilities. All of the assets, ranging from digital transmitters to a pair of hula hoops, are loose pieces of equipment and do not include any real estate.

The only secured debt on the financial schedules was described as a personal loan from G.C. Investments LLC, the Greenspun affiliate also listed at the 100 percent owner. The loan, totaling $158,000, was made in April to cover operating expenses, according to court papers, with all the property and accounts receivables except the Federal Communications Commission broadcast license pledged as collateral.

Major outside creditors included program distributors, notably Universal City Studios, 20th Century Fox and CBS Paramount Domestic Television.

Greenspun and the New York investment firm Catalyst Investors bought the station a decade ago as an affiliate of the former UPN network. When the network merged with WB to form the CW network in 2006, it dropped KTUD and forced it to become independent.

The limited revenue power of an independent combined with recession pushed the station into Chapter 11 bankruptcy reorganization in February 2010. While a debt restructuring deal allowed it to emerge, the station went dark in October.

Court papers showed revenues had dropped from $4 million in 2012 to $1.6 million last year and January.

Under Chapter 7, all assets are sold or turned over to creditors with a collateral claim to pay off debts as much as possible.

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