Bonneville has been considering offers for KOIT-AM from different companies for the past couple of years. Because this is a simulcast of KOIT-FM their board was open to selling it independtly.
At the time of the announced exchange with Entercom, KOIT-AM was in a confidental due dillegence period with another buyer who was not Immaculate Heart. That buyer's time was up and then in late March it was opened up to all possible buyers.
Although the stations transmitter site has been at Candle Stick Hill since 1936, a new owner still has to create a new business (because of the simulcast) and therefore lots of paid in capital is needed.
It isn't any different with Immaculate Heart as they have a certain amount of millions in paid in capital and the balance in a bank loan. If a buyer had to borrow all of the 14 million then their interest only payments would be around $ 100,000.00 a month!
Some of the other buyers offered a couple of million less, others went to other markets, some decided it was too much money and others could not obtain the full capital requirements.
I saw and talked ot the CEO of Bonneville at the NAB and he said that by the middle of May Immaculate Heart would have to "fish or cut bait".
It looks like the time has come today and we woun't be hearing the Chambers Brothers on 1260 Khz.
Newsperson
