Harry Pappas Forced Into Personal Bankruptcy

According to an Associated Press story, creditors have forced Harry Pappas into a personal bankruptcy filing -- an unusual move that threatens his efforts to save Pappas Telecasting Companies from financial disaster.

Pappas Telecasting owns Omaha TV stations KPTM and KXVO.

The court filings earlier this week could lead a judge to order the sale of personal property to pay off debt. In their Chapter 7 filing, creditors say Pappas and his wife, Stella, personally guaranteed $30 million of a $284 million loan that Pappas Telecasting secured in March 2006.

Creditors said the $284 million loan was based on an agreement that Pappas would sell enough of his television stations to repay $100 million of the debt. The rest would be paid on what the filing calls "a reasonable schedule."

Pappas Telecasting owes more than $5.8 million to its top 20 creditors. The biggest sum owed, $1.4 million, is to Fox Broadcasting.

Apparently, budget cuts have forced the public relations arm of Pappas Telecasting to shut down as well. The company's website press room has not had a press release posted since December of 2007.