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PHOENIX *(P Valley Telecasting Company, owners and operators of KIVA-TV in Yuma, have gone to federal court in Phoenix in an effort to settle claims with its creditors and ward off bankruptcy.The company filed a petition I with the court proposing an arrangement with its unsecured ered-| itors under provisions of federallaw relating to bankruptcy.A meeting with the creditors is ! to be held in the grand ,1 u r y room of the federal court here at 110 a.m. May 21.Prove ClaimsCreditors may attend the meeting, prove their claims, nominatea trustee, appoint a committee of creditors, examine witnesses, examine debtor, or any matter relevant to this proceeding.The board of directors of Valleyt- SPrTelecasters met in Phoenix April 17 and passed a resolution to the effect that it is insolvent and unable to pay debts as they matureand is in a position to become a bankrupt. In petitions signed by i Donald Ellsworth, president of thecompany, debts were listed at !$463,307.77 while assets were val-| ued at $236,124.86.At the May 21st session with : creditors the company wilt pro-pose to pay in full $25,000 in pri-jority debts. The company proposes 1 to settle two other classificationsof debts by paying 20 per cent of the amount.If she creditors reject these proposals. a hearing has been set forJune iith tot’ lit* turning of anorder by' the federal bankruptcy referee that the debtor is a bankrupt and bankruptcy action is tobe proceeded with under provisions of the bankruptcy law.Three InvitedSpecifically invited to the May 21st meeting are the Television Programs of America, inc., of New York; Bill Helm, deputycounty attorney of Yuma County;Linda Starr of the Starr Dancing Academy of El Centro.Television Programs of America obtained a judgment in February of 1956 for S3,550 plus costs on a suit against the station for failure to fulfill its contract on t h e “Raniar of the Jungle'* program. Trial has been set for June 4, 1957 in the federal district court of the southern district of California on a suit by Linda Starr who is seeking $50,000 damages for an alleged cancellation of an oral agree-ment for 29 dancing school programs.Ellsworth said in one of his petitions ihat the company desii'esto continue operations. He saidhis was a business of selling advertising spots and the value of the advertisiing and the value ofhis business were principally dependent upon viewers of his station. He said ih»s would he lost if tlie station is closed down. He saidalso the station is making a slightprofit and said sales during the next two months should bp approximately $62,000 - more than sufficient to pay regular and ordinary expenses, Jfe said expenses of the station run about $1,000 «day.
Newspaper Details
Yuma Sun
Yuma, Arizona, US
Fri, May 03, 1957
Page 1
Full Page
Clipped by
Sammi B.
NA 09 Jul 2022
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