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K.M. Richards
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Under the circumstances -- a bankruptcy involving an active license -- that doesn't come into play. Minority preferences are predominantly a factor in new station applications.
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Buy yourself a radio station, March 2, in Fort Lauderdale
- Thread starter AMRocks
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Under the circumstances -- a bankruptcy involving an active license -- that doesn't come into play. Minority preferences are predominantly a factor in new station applications.
K. M. you are absolutely correct. All license transfers, whether voluntary or involuntary, are subject to FCC approval. My first response was in regards to someone who had asked if JCE will need to sign off on the license transfers. The answer is no. Although I have not read the Offering Prospectus regarding the JCE auction, generally speaking the winning bidder in an auction will need FCC approval before the licenses will be transferred to said winning bidder. If for any reason the winning bidder is found to be unqualified as a licensee, then everything else leading up to the application for license transfer will become null and void. The winning bidder can still acquire the physical assets without FCC approval but said assets are useless without the licenses. Of course a creative person who may acquire the physical assets minus the licenses might enter into a lease arrangement with whomever is awarded the licenses.
K
K.M. Richards
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Thanks. That's a lot clearer than the muddled mess I made with my original posts.
I should also clarify, for TGunn's benefit, that when I referred to "minority preferences" in new station applications, what I meant was that there are bidding credits awarded for same in the new station auctions. There is, of course, no comparative hearing process anymore; the closest the FCC comes to that now is pre-qualifying the bidders.
I should also clarify, for TGunn's benefit, that when I referred to "minority preferences" in new station applications, what I meant was that there are bidding credits awarded for same in the new station auctions. There is, of course, no comparative hearing process anymore; the closest the FCC comes to that now is pre-qualifying the bidders.
I'm looking forward to see how much they get for these stations. The tower sites/property would be the biggest item of value. The studios are shit and are in a rented space. The equipment is old and broken.
As far as the south Florida transmitter sites, they are pretty much in the middle of nowhere, so they won't be of too much value for any resale purposes (as in, take down the towers and build a housing project.)
WFTL: https://www.google.com/maps/place/2...16667,-80.7416667,10z/data=!4m2!3m1!1s0x0:0x0
WMEN: https://www.google.com/maps/place/2...6.755,-80.3666667,11z/data=!4m2!3m1!1s0x0:0x0
As far as the south Florida transmitter sites, they are pretty much in the middle of nowhere, so they won't be of too much value for any resale purposes (as in, take down the towers and build a housing project.)
WFTL: https://www.google.com/maps/place/2...16667,-80.7416667,10z/data=!4m2!3m1!1s0x0:0x0
WMEN: https://www.google.com/maps/place/2...6.755,-80.3666667,11z/data=!4m2!3m1!1s0x0:0x0
Aren't the studios located in Pompano Beach (in NW Broward County)?
You're not kidding...WFTL more so than WMEN.
Sounds like there's not much too own physically. Maybe apply for the license somehow only. You would prob get new equipment and a new building or take over the lease. Will the station go dark just before the auction?
There are several types of value placed on a broadcast property. The three most common are Fair Market Value; Stick Value and Liquidation Value. If liquidation value is being used as a means to determine value by selling off pieces, then the transmitter sites are probably not very valuable to an entity such as a developer. However, if the other two values are being used (FMV or Stick), then the transmitter site location doesn't matter. In fact the real property or real estate itself can be essentially worthless and will have little if any influence on the broadcast property's value so long as the signal radiating from said transmitter site covers the desired area. In the case of WFTL, it has an impressive 50kw signal although its transmitter site is located essentially in the middle of nowhere. The station is probably worth more as an ongoing concern than it is sold off in pieces.
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Having been a creditor in a bankruptcy case, the Judge really has a lot of power. He / She is suppose to figure out what will get the creditors most money back. Unless it is a nonprofit, the public "interest" is not considered. The licenses and facilities are worth more together than separate. Someone will realize that a ongoing concern is worth more that a dark station. In fact the Judge could "pay" the fines and restart 1400 if the FCC will and tower landlord will cooperate. Technically the bankruptcy judge has the full faith and backing of the US government and us taxpayers. The Trustee / Judge can "cherry pick" contracts keeping only the ones that are beneficial to the estate. If the judge / trustee pays the salaries, non competes might still be in effect. The largest creditor(s) will be asked to approve the plan (sales) or after the "exclusive time" they can submit their own plans. Usually the plan is negotiated and there is no court room drama.
Does anyone have any info about which district court this was filed in. Usually Airlines go to Chicago. Where did Citadel file? If I had a choice that would be the Court I would file in.
Does anyone have any info about which district court this was filed in. Usually Airlines go to Chicago. Where did Citadel file? If I had a choice that would be the Court I would file in.
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License transfer and station sales...
When I bought my station, it was not a bankruptcy auction, but procedure is largely the same. A station sale contract (for any station that has facilities existing) is a contract for the sale of the assets and and agreement to apply for transfer of the license. Closing is contingent upon that transfer. That is why when one hears of a station being sold, it is typically two or three months until it happens. The FCC will normally approve a transfer, unless something is wrong -- if the owner is not qualified (foreign, most felons, etc.). In a bankruptcy auction, the buyer would have to make the down-payment in accordance with the terms of the auction, but like any station sale it would be refunded if the sale could not close for reasons beyond the control of the buyer (such as lack of FCC approval). Normally, it would be an agreement between the old and new owners of the station, but in this case, the Bankruptcy Court is acting as the trustee and could enter into such an agreement.
...Sam Brown
When I bought my station, it was not a bankruptcy auction, but procedure is largely the same. A station sale contract (for any station that has facilities existing) is a contract for the sale of the assets and and agreement to apply for transfer of the license. Closing is contingent upon that transfer. That is why when one hears of a station being sold, it is typically two or three months until it happens. The FCC will normally approve a transfer, unless something is wrong -- if the owner is not qualified (foreign, most felons, etc.). In a bankruptcy auction, the buyer would have to make the down-payment in accordance with the terms of the auction, but like any station sale it would be refunded if the sale could not close for reasons beyond the control of the buyer (such as lack of FCC approval). Normally, it would be an agreement between the old and new owners of the station, but in this case, the Bankruptcy Court is acting as the trustee and could enter into such an agreement.
...Sam Brown
Sam, you are correct. Most stations sold singularly or in smaller clusters are sold using an Asset Purchase Agreement ("APA") which simply states as you pointed out only the tangible assets are included in the sale, i.e, transmitter, broadcast equipment, towers, land, buildings, etc. Larger companies, however, such as when Clear Channel communications merged with Jacor Broadcasting and Chancellor Media, an APA was not used but rather, for lack of a better term, a "stock swap" was used to acquire the radio stations because the entire company was being acquired rather than individual stations. Unfortunately when one company acquires another company, the acquiring company normally also acquires the acquired companies liabilities in the deal whereas when using an APA liabilities do not normally transfer to the buyer unless expressly agreed upon by both parties to the transaction. When Clear Channel Communications (Now iHeart Media) acquired Paxson Communications Corporation's radio division in 1997 for $693 million cash, an APA was used as "Uncle" Bud Paxson did not sell the company but only sold the radio stations within the company.
I thought they would sign off the station to auction it off.. It's still on the air.. Just checked. You guys here who bought it?
Is it too early to find out what happened at the auction?
Out of curiosity what happens if there are no takers?
An insider tells me that management is gone and new people are in place, doing inventory. The plan, for now, is to keep the stations on the air, do an inventory and then decide what to do. So, for now, you likely won't hear any on-air changes. But I bet that changes quickly. I also heard they shut off the Dallas station. Anyone know someone in Dallas who can confirm? 1480 KXBD
UPDATE: I saw this on Wikipedia, so JCR/JCE may have turned it off.
According to the FCC KBXD is licensed and silent since December 17, 2014.
"JCE's request states that Station KBXD(AM) went silent on December 17, 2014, pending the proposed modification of its facilities. The request includes the appropriate certification regarding Section 5301 of the Anti-Drug Abuse Act of 1988.' JCE's request is granted. Accordingly, Special Temporary Authority is granted to permit Station KBXD(AM) to remain silent not to exceed 180 days from the date of this letter. Notwithstanding the grant of this Special Temporary Authority, the broadcast license for Station KBXD will automatically expire as a matter of law if broadcast operations do not commence by 12:01 a.m., December 18, 2015. JCE is required to notify the Commission when broadcast operations resume. If JCE does not file the notification of resumption of operations in a timely manner, the license may be subject to cancellation pursuant to Section 312(g) of the Communications Act, as amended." - Lisa Scanlan, Assistant Chief, Audio Division, Media Bureau [FCC]
UPDATE: I saw this on Wikipedia, so JCR/JCE may have turned it off.
According to the FCC KBXD is licensed and silent since December 17, 2014.
"JCE's request states that Station KBXD(AM) went silent on December 17, 2014, pending the proposed modification of its facilities. The request includes the appropriate certification regarding Section 5301 of the Anti-Drug Abuse Act of 1988.' JCE's request is granted. Accordingly, Special Temporary Authority is granted to permit Station KBXD(AM) to remain silent not to exceed 180 days from the date of this letter. Notwithstanding the grant of this Special Temporary Authority, the broadcast license for Station KBXD will automatically expire as a matter of law if broadcast operations do not commence by 12:01 a.m., December 18, 2015. JCE is required to notify the Commission when broadcast operations resume. If JCE does not file the notification of resumption of operations in a timely manner, the license may be subject to cancellation pursuant to Section 312(g) of the Communications Act, as amended." - Lisa Scanlan, Assistant Chief, Audio Division, Media Bureau [FCC]
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