Political ads are key to broadcasters' recovery

Mudslinging political campaigns generally aren't looked upon well by the viewing public. But those in the TV and broadcasting industry may be jumping for joy when the gloves come off next year. Indeed, with TV station operators feeling the crunch of lost ad revenue and increasingly turning to Chapter 11 to free themselves of their debt problems, Kevin Shea, managing director at Loughlin Meghji & Co., thinks that the dollars to be had will come from pending political battles in 2010. Shea advises lending groups in the bankruptcies of NV Broadcasting LLC and Young Broadcasting Inc., and his firm has also worked on the Chapter 11 case of Pappas Telecasting Inc. and the out-of-court restructurings of several others. The sector may also soon see Sinclair Broadcast Group succumb to bankruptcy after the company recently warned of such a fate because of debt problems. "The whole TV and broadcasting industry is due for some form of restructuring in the next 12 months," he predicts.