Adios, Nassau?

[trixter]

Looks like Goldman Sachs really wants to bring the whole Nassau house of cards down, and they want to do it quickly...seems that they think Lou Mercantanti is going to skip town, with all the cash in his briefcase...I hate to think of all those jobs being at stake, but something tells me that everyone under the Nassau umbrella is trying to get in to a production studio today, to get on updating those demos...

From All Access

GOLDMAN SACHS LENDING PARTNERS LLC, FORTRESS CREDIT OPPORTUNITIES I LP, and P.E. CAPITAL, LLC., the creditors seeking to put NASSAU BROADCASTING PARTNERS into involuntary Chapter 7 bankruptcy, have had their request to move up a hearing on the company's cash disbursements granted by U.S. Bankruptcy Court Judge KEVIN GROSS.

The judge granted a motion to shorten the required 14 day notice and allow a hearing on OCTOBER 6th at 10a, with responses and objections due OCTOBER 5th.

The motion asserted that "there is a genuine concern that assets of the Alleged Debtors’ estates may be used for purposes other than those directly related to the normal course operation of the Alleged Debtors’ businesses and, in particular, to further the personal and parochial interests of (NASSAU principal) Mr. (LOU) MERCANTANTI."

I read that today. Oct. 5th is when all the paperwork is suppose to be in. October 6 is when this may get very nasty. Nevertheless, whoever wins or loses, you can count on an appeal for sure! I would love to be a fly on the wall to hear the arguments presented by both sides!

 

[bigtom101]

Oct. 5th is when all the paperwork is suppose to be in. October 6 is when this may get very nasty. Nevertheless, whoever wins or loses, you can count on an appeal for sure! I would love to be a fly on the wall to hear the arguments presented by both sides!

Even with this going full steam ahead, I doubt that much will happen before Q1 2012. But I would be trying to exit the sinking ship myself if I was at Nassau.

 

[TimeIsTight]

Reading reports from Nassau's court filings this week, it's not surprising that Nassau has asked the bankruptcy judge to convert the case from Chapter-7 liquidation to Chapter-11 reorganization that would allow the company to emerge as a going concern.

Nassau is claiming that it has a positive cash flow, and that a reorganization would be in the best interests of all concerned, including debt holders, employees and listeners.

It reportedly also claims that Goldman Sachs and the other debt holders offered to finance a Chapter-11 plan, but filed for involuntary Chapter-7 liquidation when Nassau didn't file for "voluntary" Chapter-11 by a September 24th deadline the creditors had set.

Reports show that under that expired creditors offer, Nassau would ultimately be sold as a company under Section 363 of the bankruptcy code.

So, now its up to the judge to decide whether to auction off all the parts and pay the creditors, or allow a reorganization that Nassau would survive, but where it might have to be sold as one unit to maximize payments to the debt holders.

Nassau operates 49 radio stations with a total of 365 employees.

 

[jeffwoehrle]

Been watching this for a while now...

Couple of things:

If Nassau is counting on a showing of 'positive cash flow' to convert this to an 11, I'd be asking why debt service isn't included in that. The very obligation that created the group is not being paid back per original agreement (for some time now). Kind of like robbing a bank and depositing the money in a different bank and claiming you own the interest it generates.

That said, straight liquidations are rare...particularly in something that has a perceived shelf life like radio signals. Any period of darkness decreases the value and will probably be avoided.

I predict a convert to 11 managed by trustee's appointments.

 

[trixter]

Been watching this for a while now...

Couple of things:

If Nassau is counting on a showing of 'positive cash flow' to convert this to an 11, I'd be asking why debt service isn't included in that. The very obligation that created the group is not being paid back per original agreement (for some time now). Kind of like robbing a bank and depositing the money in a different bank and claiming you own the interest it generates.

That said, straight liquidations are rare...particularly in something that has a perceived shelf life like radio signals. Any period of darkness decreases the value and will probably be avoided.

I predict a convert to 11 managed by trustee's appointments.

Good call and you are absolutely right on chapter 11!

http://www.rbr.com/radio/nassau-bankruptcy-converted-to-chapter-11.html

 

[RyanHoward]

Maybe Merlin Media could buy 94.5 PST and change it to FM News 94.5, focusing on the Philly market.

If I win the lottery, 94.5 The Vibe will come to New Jersey!

Not going to happen. Not by a longshot! Maybe Clear Channel or CBS can buy WPST.

 

[jeffwoehrle]

Been watching this for a while now...

Couple of things:

If Nassau is counting on a showing of 'positive cash flow' to convert this to an 11, I'd be asking why debt service isn't included in that. The very obligation that created the group is not being paid back per original agreement (for some time now). Kind of like robbing a bank and depositing the money in a different bank and claiming you own the interest it generates.

That said, straight liquidations are rare...particularly in something that has a perceived shelf life like radio signals. Any period of darkness decreases the value and will probably be avoided.

I predict a convert to 11 managed by trustee's appointments.

Good call and you are absolutely right on chapter 11!

http://www.rbr.com/radio/nassau-bankruptcy-converted-to-chapter-11.html

Ah, no trustee in charge. So I was only half right. LOL...