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Divestiture trusts

N

NHRadio

I have some questions if you don't mind...
What is the responsibility of the trustee of a station divestiture trust like the Aloha trust?
Is it to sell the stations for the highest price possible, or to sell them as quickly as possible to comply with ownership caps?
When stations operate in such a trust, who gets the profit/absorbs the losses? Does the staff work for the trust or for the original company?
In my area Goldman Sachs/Nassau is placing 2 stations in a trust and I'm wondering a bit on how these things work.
Thanks.
 
NHRadio said:
I have some questions if you don't mind...
What is the responsibility of the trustee of a station divestiture trust like the Aloha trust?
Is it to sell the stations for the highest price possible, or to sell them as quickly as possible to comply with ownership caps?
When stations operate in such a trust, who gets the profit/absorbs the losses? Does the staff work for the trust or for the original company?
In my area Goldman Sachs/Nassau is placing 2 stations in a trust and I'm wondering a bit on how these things work.
Thanks.
Click to expand...

The main purpose of a trust of this kind is to isolate the asset from the owner. For example, politicians put their investments in blind trust, administerd by a third party, while in office. They don't even know what the money is invested in. But they still own the investments, and get the income or profits.

In the case of stations that are over quota in one way or another, the trust runs the station , and the parent, supposedly, does not exercise control. The idea is to remove the station from the concentration of ownership that the rules are intended to prevent while the station is sold. And generally, the idea is to get a reasonable price, and the authorities understand that placing assets in a trust does not mean a fire sale is going oin
 
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