The bankruptcy case of KDFI-TV (Channel 27), apparently spawned by a lawsuit over old "Mork and Mindy" programs, appears to be on its way to resolution, said attorneys and station officials.

A dispute between the secured and unsecured creditors of the independent television station was resolved July 19, clearing the way for a reorganization plan to be presented to the courts, said Bob Albergotti, a Haynes and Boone attorney representing the station owners. The station could emerge from Chapter 11 bankruptcy protection as early as mid-September, he said.

The resolution has snuffed previous discussions between station owners and wealthy Dallas businessman Carl Westcott about a possible sale of the independent station. Westcott, chairman of satellite television company Westcott Communications Inc., had approached the station in April and met with station officials several times since then, but has not made an offer to buy the station, according to bankruptcy court documents.

"There's no desire on the part of the station or the creditors to sell the station," said John McKay, part owner and president of Dallas Media Investors Corp., which owns the station. "We feel like we have a good thing going here."

Channel 27 is one of a number of so-called independent stations, or non-network-affiliated stations, in the hotly competitive Dallas market. Analysts rank Channel 27 seventh or eighth in terms of market...