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NASSAU facing involuntary bankruptcy

Wow. Since I'm not familiar with business bankruptcy law, if the Chapter 7 petition is granted at the hearing Thursday would the court order an immediate shutdown?
 
"The motion claims that, "there is a genuine concern that assets of the alleged debtor's estates may be used for purposes other than those directly related to the normal course operations of the alleged debtor's b'sinesses and, in particular, to further the personal and parochial interests of (Nassau principal) Mr. (Louis) Mercantanti (Jr.)"

It sounds like Mercantanti may have gotten his hand caught in the cookie jar.....?
 
So many things to consider, so many unanswered questions! I've heard of single license mom-and-pop instances of Chapter 7, usually small-town AMs, but has this ever happened with a company holding as many FCC-issued broadcast licenses as Nassau does? Does the court have to take into account that these are radio stations serving the public interest and in some cases like up in Derby VT, theirs are the only stations in town? How much could Goldman Sachs recoup selling an assortment of transmitters, mics and desks and chairs vs. selling actual operating, money-making radio stations?

Seems here in Portland, the Nassau stations are promoting a $500 daily cash giveaway regardless!

I bet Herb and Randi (and JJ) are waiting this one out with bated breath!

Interesting times call for interesting refreshments... but I'm poor so it will have to be Milwaukee's Best for Portland's best!

Cheers,
OldPort Wino
 
If the radio stations are in a "shell" corporation*, the "shell" company is not a part of the bankruptcy. The bankruptcy of a shareholder does not endanger the corporation. Who ever "controls" the shares however, gets to vote and elect officers in the corporation and receives any dividends. Sometimes the judge can pierce the "corporate shield", but usually only during fraud and tax fraud cases. My best guess would be the only stations that will be affected directly will be stations that have Nassau as the license holder. If Goldman thinks these stations are viable (enough cash flow to pay the everyday bills) they most likely ask the the Judge to keep them running. There is a small but very well paid group of lawyers that will "find" you the Bankruptcy Court that in the past has have the best outcome (screwing the shareholders while protecting current management for example). That is why Delta and Northwest airlines both used Chicago. BTW while in bankruptcy, all the expenses "bills" that the court's trustee OK's are backed by US the taxpayer.

* A lot of times the licences will still be in the "name" of the company that sold the station. AN example CC's WGST station license's is still listed as Citicasters. Z100 NYC is still listed as AMFM.
 
OldPort said:
So many things to consider, so many unanswered questions! I've heard of single license mom-and-pop instances of Chapter 7, usually small-town AMs, but has this ever happened with a company holding as many FCC-issued broadcast licenses as Nassau does? Does the court have to take into account that these are radio stations serving the public interest and in some cases like up in Derby VT, theirs are the only stations in town? How much could Goldman Sachs recoup selling an assortment of transmitters, mics and desks and chairs vs. selling actual operating, money-making radio stations?

Seems here in Portland, the Nassau stations are promoting a $500 daily cash giveaway regardless!

I bet Herb and Randi (and JJ) are waiting this one out with bated breath!

Interesting times call for interesting refreshments... but I'm poor so it will have to be Milwaukee's Best for Portland's best!

Cheers,
OldPort Wino
Click to expand...

Milwaukee's Best? Yikes. For a little more, try Rolling Rock. 12 bucks for a 30 pack of 12 oz. cans.
 
If the stations go dark, My best regards to some peoples livelihood John R. Deveney Adam and Todd up in Derby Center I miss working with them. If this goes through how much do you suppose it would take to buy the 92.1 Frequency and the unbuilt 105.9 in Hardwick as well as the rights if Hardwick was approved and could just make a city grade signal into St. Johnsbury to get 99.3 (harvest translator) turned back on. I always have that dream of getting a active rock station for the NEK-VT.
with the 99.3 Translator off at the moment i am enjoying 99 rock on 99.3 with a bunch of static and a weak signal but it does come in pretty clear in some areas including Crepalut hill rd south of Coles Corner where I stay when I am up in St. Johnsbury VT an where there is no cell service and only dial-up internet so no internet radio streams available here to listen to.
 
Great dream, but more than you have. An active rocker in the NEK? You may get listeners but you'd never turn a profit there. Not enough of an ad base.

Jamie said:
how much do you suppose it would take to buy the 92.1 Frequency
Click to expand...
 
I have not been following this closely, but it is possible for an involuntary chapter 7 case to end with the judge appointing a trustee to take control of the business and ultimately sell it. The trustee could continue to operate the stations, and do so in the best interests of the creditors. The trustee, with the power of the court behind him can do things like tell the electric company we'll pay what we want and when we feel like it and if you don't like it, pi$$ off. The FCC will not go out of their way to get involved either.
 
NHRadio said:
Great dream, but more than you have. An active rocker in the NEK? You may get listeners but you'd never turn a profit there. Not enough of an ad base.

Jamie said:
how much do you suppose it would take to buy the 92.1 Frequency
Click to expand...
Click to expand...
I did not invest in 94.5 for that reason. Would blueberry buy it (the nassau stations)? TOM-O and Mr Mike in the mornings :) I miss the mighty TOS. Its amazing how many people talk about 99.9 the buzz or 105.1 TOS still up here and listen when it comes in when they travel to Maine or Burlington. I have been stuck in the CT/NYC area for a few weeks until ski season. I do what everyone I know does barely listen to FM and plug in your Ipod or internet radio. I am so sick and tired of hearning the same songs over, and over and over again in the same day as are many others for CHR or Stale classic rock tunes. In the NEK-VT life is still a lot slower and people listen to the radio for hours on end in the car at work or at home from what I have observed. Look at 99.3 rock you go to a gas station it playing south of St. Johnsbury to Bellows falls at many gas stations. you go to a gas station here in stamford CT its Sirius XM everywhere or Gasoline TV. I never hear 95.9 the fox Playing or star 99.9 on a radio here (the local stations). - Just throwing in my thoughts and observations. I hope that one day I can own my own station or having the pleasure of being a full time on Air DJ. Until then... its all just dream.

( http://facebook.com/theozno )
 
disregard my last post if you may. my internet stalled out for 10 min and I could not submit my Edit... The annoying you can;t go back and edit rule after a few min*
here it is edited
I did not invest in 94.5 for that reason. Would blueberry buy it (the nassau stations)? TOM-O and Mr Mike in the mornings :) I miss the mighty TOS. Its amazing how many people talk about 99.9 the buzz or 105.1 TOS still up here and listen when it comes in when they travel to Maine or Burlington. I have been stuck in the CT/NYC area for a few weeks until ski season. I do what everyone I know does barely listen to FM and plug in your Ipod or internet radio. I am so sick and tired of hearning the same songs over, and over and over again in the same day as are many others for CHR or Stale classic rock tunes but understand sales, ratings and shareholders come 1st. In the NEK-VT as many of you know life is a lot slower and people listen to the radio for hours on end in the car at work or at home from what I have observed I think this also do to the fact that there is local news information as well as a much broader playlist's that you don't get sick of the music as much. Most of the small communities from what I have observed like supporting local events and businesses "buy local". Look at 99.3 rock for example. you go to a gas station it playing south of St. Johnsbury to Bellows falls at many gas stations. you go to a gas station here in stamford CT its Sirius XM everywhere or Gasoline TV. I never hear 95.9 the fox Playing or star 99.9 on a radio here (the local stations). - Just throwing in my thoughts and observations. I hope that one day I can own my own station or having the pleasure of being a full time on Air DJ. Until then... its all just dream.

( http://facebook.com/theozno )
 
OldPort said:
So many things to consider, so many unanswered questions! I've heard of single license mom-and-pop instances of Chapter 7, usually small-town AMs, but has this ever happened with a company holding as many FCC-issued broadcast licenses as Nassau does? Does the court have to take into account that these are radio stations serving the public interest and in some cases like up in Derby VT, theirs are the only stations in town? How much could Goldman Sachs recoup selling an assortment of transmitters, mics and desks and chairs vs. selling actual operating, money-making radio stations?

Seems here in Portland, the Nassau stations are promoting a $500 daily cash giveaway regardless!

I bet Herb and Randi (and JJ) are waiting this one out with bated breath!

Interesting times call for interesting refreshments... but I'm poor so it will have to be Milwaukee's Best for Portland's best!

Cheers,
OldPort Wino
Click to expand...




Some of the leading experts on bankruptcy law have chimed in on the Nassau case. They feel that a judge most likely will rule chapter 11 or some other similar arrangement will be made. There is still substantial real cash flow with this company and judges are hard pressed to order liquidation of assets with chapter 7. And also, I have read from here and other sources that the court agreed with Goldman Sachs on an earlier hearing date. NO BIG DEAL! I saw the reasons why and G. Sachs got a little paranoid on some business transactions occurring with Nassau. Be nice if TruTV was televising the hearing but we all know that will not happen! :p
 
Yeah, I'd love to be in the courtroom for the hearing tomorrow. I'm betting the court will appoint a receiver and take control out of Nassau's hands, with a liquidation decision postponed until the receiver knows what he/she is dealing with. Any stations not generating cash probably will shut down. Agree? Disagree?
 
NHRadio said:
Yeah, I'd love to be in the courtroom for the hearing tomorrow. I'm betting the court will appoint a receiver and take control out of Nassau's hands, with a liquidation decision postponed until the receiver knows what he/she is dealing with. Any stations not generating cash probably will shut down. Agree? Disagree?
Click to expand...

Agree, a trustee will be appointed. This person will be like an auditor for the court. Hmm, stations going dark? That remains to be seen but AM'rs beware!
 
It's interesting to note that Goldman set a September 4th deadline for Nassau to file Chapter 11 voluntarily; Mercatanti let the deadline lapse. What did he gain by postponing the inevitable? Unless, of course, his hands really *were* in the cookie jar...
 
If I had to guess, Lou played chicken and thought GS would blink...after all, they own 85% of the company. How can you be owed 60+ million by a company you (for all intents and purposes) own?
 
My take is that the court will rule on chapter 11 with stipulations. There is that possibility the court may force Nassau to put non money making stations up for auction and then proceed with chapter 11 with the remaining clusters. For me, that possibility would send shock waves if I was employed with the New England cluster or a station riding the fence with their finances.
I think a ruling will come quickly within 2 weeks and the aftermath will begin in time for the Holidays! :eek:
 
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