Businessweek.com says Nassau has 21 days to respond to the petition. Right now the stations are on the air and generating some revenue. AFAIK, a Chapter 7 liquidation would require the stations to go dark, which would hurt their value. Anyone else think Goldman et al have just run out of patience?
Chapter 7 usually means a total sale of assets. Depends on which court and Judge you file in. If you can convince the Judge an on going business that is generating positive cash (paying day to day expenses and wages then some) is more valuable that a shut down operation most Judges will try to keep it open. It is the Judge's "duty" to recover the most money for the creditors. Some Courts have a reputation for a "better" outcome either the creditors or current management. That is why most of the Airlines' management use Chicago. Delta and Northwest emerged "stronger" thanks to the Chicago Bankruptcy Court. I am sure that Goldman et al has picked a "Court" that has in the past ruled the way that will be favorable to them.