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'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.)
What ever became of 640's project to move their xmtr site and increase their power?
It is no longer listed.
Ai4i has Always Been on the Trailing Edge of Technology!
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.
Last edited by jmtillery; 02-18-2015 at 11:40 PM.
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.
Last edited by secondchoice; 02-23-2015 at 04:26 PM.
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.
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