Infamous said:
The details on the deal was that Convergent didn't want to purchase KTKY in Refugio until the FCC would grant the construction permit move for 106.5.
Technically the CP WAS granted, but a backfill application for Refugio was not "Built" so KTKY could not start broadcasting from "Taft".
Convergent wanted first dibs on purchasing it so they signed a contract that required Convergent to pay $100K a year to maintain the option with Pacific.
That was in the sales contract when they bought the rest of the group.
Convergent was suppose to have made the first payment in January but missed the due date and paid later in February. This now put Convergent in default and allowed Pacific to void the option. The relationship with Pacific and Convergent had already started to deteriorate due to antenna issues (a whole other story there). Pacific sent Convergent back the $100K and said 'no thank you'.
At this point Pacific contacted Tejas Broadcasting and paid them a chunk of change to move the COL of KOUL to Refugio and this would now allow KTKY to move to Taft.
Actually, Convergent paid the money to Tejas to change COL for KOUL, Before the default. That will be important later.
(At that time KTKY was the only station licensed to Refugio and needed KOUL to change COL [to Refugio to maintain local servicer.] & move out of there.
Actually, Convergent paid the money to Tejas to move. This now set them up with the FCC to get the CP granted out of Taft, TX and the rest is radio history. lol
It is. However when Pacific "Kept" KTKY , they then went to Tejas and said, "You've got most of your money and have agreed to move, so how much do you want to finish the deal? "
Tejas said (as I understand it) "We have to move, but not until our construction permit expires in 2 1/2 years. You want us to move now, make it worth our while."
Pacific was short on cash and waited out Tejas. Tejas eventually had to "Complete" the terms of the CP, (Which made them go into the prod studio and change the legal ID from KOUL Sinton to KOUL Refugio.) Since the allotment has already been changed they couldn't "not" follow thru, although, as far as I can tell they waited until almost the last day.
A funny sidelight to this story is what you would expect. After the Pacific/ Convergent KTKY deal went south, Pacific still had a CP which was designed to go on the Formerly Pacific, now Convergent combiner in Ingleside. When Pacific tried to negotiate getting on the combiner antenna (Which was designed to accomodate it) Convergent said not only no but "HELL NO". After several trips to meet with Convergent by several people, Pacific was able to put an antenna on the same tower, HIGHER UP, with a slight null to the Ocean because of tower space limitations.
Result... Pacific gets 106.5 on the same tower and pays American Tower a bunch of cash. Convergent get's the warm and fuzzy feeling of knowing they "Stuck it" to Pacific.
106.5 is on the air and the big winner is.... American Tower.
Good Luck Scott. I wish you all the luck in the world. I'll leave it at that