 After the closure of the KGWC-TV operation, financial problems developed at Benedek.The early 2000s recession dented ad sales and caused the company to be unable to pay interest on a set of bonds issued in 1996, prompting a filing for Chapter 11 bankruptcy.While many Benedek stations were sold to Gray Television, some—including KGWC-TV and KGWN-TV—went to Chelsey Broadcasting, an affiliate of the Chelsey Capital hedge fund.