NASSAU facing involuntary bankruptcy

[Andy Taylor]

Creditors owed more than $83.8 million are looking to get paid.It looks like a Chapter 7 which is liquidation?

 

[NHRadio]

Businessweek.com says Nassau has 21 days to respond to the petition. Right now the stations are on the air and generating some revenue. AFAIK, a Chapter 7 liquidation would require the stations to go dark, which would hurt their value. Anyone else think Goldman et al have just run out of patience?

 

[secondchoice]

Businessweek.com says Nassau has 21 days to respond to the petition. Right now the stations are on the air and generating some revenue. AFAIK, a Chapter 7 liquidation would require the stations to go dark, which would hurt their value. Anyone else think Goldman et al have just run out of patience?

Chapter 7 usually means a total sale of assets. Depends on which court and Judge you file in. If you can convince the Judge an on going business that is generating positive cash (paying day to day expenses and wages then some) is more valuable that a shut down operation most Judges will try to keep it open. It is the Judge's "duty" to recover the most money for the creditors. Some Courts have a reputation for a "better" outcome either the creditors or current management. That is why most of the Airlines' management use Chicago. Delta and Northwest emerged "stronger" thanks to the Chicago Bankruptcy Court. I am sure that Goldman et al has picked a "Court" that has in the past ruled the way that will be favorable to them.

 

[OldPort]

Does this mean a fast sale of the properties? Does this mean I, a bottle and can hoarder, might have a shot at buying my very own radio station(s)? Will Frank FM even get to finish their "A to Z" before the doors are locked one morning?

Hoping all the best for the employees at Nassau, they are the innocent victims.

Cheers,
OldPort Wino

 

[JIBGUY]

And whats the future of 870 and 1470?

 

[newsbot]

Nassau was supposed to be lining up financing to take the stations off Goldman's hands. Even under that scenario Nassau would have sold off its New England stations and real estate assets. Apparently their efforts have come to naught and Goldman decided they'd had enough.

http://www.rbr.com/radio/nassau-broadcasting-s-lenders-lower-the-boom.html

Nassau is on a very tight leash in terms of CAPEX, as evidenced by their "decision" to let WHNV die rather than fix the transmitter.

 

[trixter]

Nassau was supposed to be lining up financing to take the stations off Goldman's hands. Even under that scenario Nassau would have sold off its New England stations and real estate assets. Apparently their efforts have come to naught and Goldman decided they'd had enough.

http://www.rbr.com/radio/nassau-broadcasting-s-lenders-lower-the-boom.html

Nassau is on a very tight leash in terms of CAPEX, as evidenced by their "decision" to let WHNV die rather than fix the transmitter.

Sounds like bad feelings between Lou and Goldman Sachs! This may get really nasty!

 

[OldPort]

Nassau was supposed to be lining up financing to take the stations off Goldman's hands. Even under that scenario Nassau would have sold off its New England stations and real estate assets. Apparently their efforts have come to naught and Goldman decided they'd had enough.

http://www.rbr.com/radio/nassau-broadcasting-s-lenders-lower-the-boom.html

Nassau is on a very tight leash in terms of CAPEX, as evidenced by their "decision" to let WHNV die rather than fix the transmitter.

Sounds like bad feelings between Lou and Goldman Sachs! This may get really nasty!

I think the old saying, now proven more true than ever in recent times, "it's easier to find a job when you still have one" applies... I bet there will be a scurry of demos and resumes heading to Herb, Tim and Randi's desks (and elsewhere) from current Nassau staffers... I don't think most Chapter 7 situations result in severance packages for the rank-and-file... sad...

Cheers,
OldPort Wino

 

[12 In a Row]

Involuntary Chapter 7 bankruptcy liquidation never has a good outcome. Very sad!

 

[nhradiochild]

What will this mean for the mighty Q [WHDQ]? All the rest of the stations could go dark for all I care, but it would be a shame for the range Q106 has to be shut down. Not to mention a serious hole in Claremont radio. Well, Bob? Time to expand WNTK to brand new heights? Or WCNL for that matter.

 

[NHRadio]

I'd be very surprised if this petition is granted. Isn't the whole idea of bankruptcy to preserve value for creditors? Seems to me Chapter 11 would do that better than a liquidation.

 

[trixter]

I'd be very surprised if this petition is granted. Isn't the whole idea of bankruptcy to preserve value for creditors? Seems to me Chapter 11 would do that better than a liquidation.

I have to agree. However, there seems to be bad blood with all parties involved. You never know about what is going on behind the scenes. Goldman Sachs Legal team could have gone "cherry picking" for a court who is known for frequently handing out chapter 7s. Nevertheless, I believe these proceedings will be long and drawn out with no quick resolution.

 

[NHRadio]

Let's not forget GS owns 85% of Nassau...so they'll be across the table in the courtroom from...themselves. Odd.

 

[OlderRadioGuy]

Let's not forget GS owns 85% of Nassau...so they'll be across the table in the courtroom from...themselves. Odd.

Did that actually ever close?

 

[newsbot]

It must have closed, or else Nassau wouldn't have lost its grandfathered status in 2009

 

[OlderRadioGuy]

Nassau was going to loose grandfather status as a result of the change of control to G-S, but a search of FCC files of random Nassau owned New England stations indicates that 316s were never filed. Maybe this is part of the issue.

 

[ThatGuyOnTheRadio]

Nassau was going to loose grandfather status as a result of the change of control to G-S, but a search of FCC files of random Nassau owned New England stations indicates that 316s were never filed. Maybe this is part of the issue.

Would the 316 need to be filed? Since Nassau still operated the stations? I thought GS got 85% control. Does that mean actual ownership in the FCC's eyes?

 

[NHRadio]

AFAIK, ownership of the actual stations did not change but control did when GS took equity in Nassau's various holding companies. Those entity's holdings stayed the same.
Please correct me if I have it wrong.

 

[secondchoice]

I wish the FCC's web site was current. Credit card companies can keep up with literally millions of transactions daily. The FCC should be one or two business days behind at the most.

 

[ThatGuyOnTheRadio]

I wish the FCC's web site was current. Credit card companies can keep up with literally millions of transactions daily. The FCC should be one or two business days behind at the most.

It's the government. What do you expect?