Bidders vie to purchase KTVD out of bankruptcy proceedings

Terence Brown, the former manager of KDVR-Channel 31, is leading a buyout group that is competing with Philadelphia-based Pennsylvania BancShares Inc. to purchase KTVD-Channel 20 out of Chapter 11 bankruptcy.

Under the Brown reorganization proposal, submitted July 1 by the independent television station's parent company, Twenver Inc., 90 percent of the Twenver stock would be sold to Brown's group in exchange for $3.6 million in new equity capital. Of that amount $2 million would go to a fund to pay administrative and wage claims and unsecured creditors, and $1.6 million would contribute to working capital.

Under the plan, 10 percent of the stock would go to unsecured creditors on a pro rata basis.

Speaking from Rochester, N.Y., where he is seeking additional investors, Brown said his group would consist of "10 to 15 investors of equal proportion," mostly from metro Denver. He acknowledged that he hasn't raised the full $3.6 million yet.

After six years of managing the Fox Broadcasting Co. network affiliate, Brown left KDVR in April because "new owners came in and they decided to bring in their own people," he said. The new owners, Hartford, Conn.-based Chase Broadcasting Inc., bought KDVR in...