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Inner City Creditors May Force Asset Sales

D

DudeFan

Tom Taylor reports today that Inner City Creditors gave notice that they will ask the bankruptcy court on Tuesday morning to set the procedures for sale of the assets of Inner City, including the stations in New York, SF, Jackson (MS) and Columbia.

Looks like the other shoe is falling and that the Suttons -- really -- pissed off the creditors.
 
The market is too big for Townsquare, typically. They are one of the few buyers out there. That is why Double O is having such a difficult time selling... that and the Double O stations are dogdoo right now.
 
I guess they would be one. The Inner City stations are ideal for someone that wants to buy a cluster. That is pretty much all the commercial groups want to buy. Inner City is particularly attractive because of the WHXT/WWDM cash flow. Fox and ARQ would essentially come along for the ride.

Here is why the Double O stations are still on the market and are likely to be so for some time to come: Double O likely is asking too much and it is a duopoly with no other stations available to create a sizeable cluster with. Moreover, as programmed, there is little to no potential audience growth and hence, little to no potential for serious revenue growth. At this point, I am sure EMF or one of the other religious broadcasters has kicked the tires, but they are likely only interested in paying stick value.

In all of this, Jerry DelColliano has floated the turd that Clear Channel may need to divest markets in order to stay afloat. I take whatever he says with a sizeable grain of salt.

All told, interesting times.
 
Not on this morning? There's no trace of him on the website, but that doesn't mean anything since they are even worse than we are about using the website.
 
DudeFan said:
Not on this morning? There's no trace of him on the website, but that doesn't mean anything since they are even worse than we are about using the website.
Click to expand...

Their facebook says he will be back this week.
 
Tom Taylor reports this morning that a sale of all the stations is almost a foregone conclusion. He quoted one representative as telling the bankruptcy court, “a sale of all or substantially all of the debtors’ assets” is “the only viable alternative to a Chapter 7 liquidation that is supported by the lenders.”
 
Actually, if there was a buyer with deep, deep pockets (which is few and far between these days), I guess they could technically buy the Inner City AND Double O clusters, since you can have 5 FM's in the market, right? Spin the least valuble station in to a separate trust and run it, put it up for sale, or wait until conditions could potentially get better to sell it. Would that be a possibility?
 
If you wanted to mix and match. I have not looked at the rules recently, but while I recall is that in a market Columbia's size, the limit is 4 FM's and a max of 7 stations.
 
I think it's 5/3 anywhere now. I'm in a smaller market than you are (eastern NC) and Beasley owns 5 FMs here.
 
In Greenville/Spartanburg (#60), Entercom has 5 FM's and 2 AM's. Pretty sure Triad has 5 FM's and 1 AM in Savannah (market #150 something?), and Clear Channel has 5 FM's in Augusta.
 
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