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NEW NORTHWEST BROADCASTERS

B

bossbill

I'm surprised that nothing's been posted yet on the apparent liquidation coming in the next few months of the New Northwest stations. No, they don't have any Seattle stations, but they're based in Seattle and are in several markets in Washington and Oregon, including Tri-Cities, Yakima, Wenatchee, Astoria, etc.

Aside from the statements that they can't pay their bills when due, and that they've asked a judge to appoint a receiver to dispose of the stations, does anyone have more specific information?
 
My reaction is that I'm not all that shocked by this. The finance people moved in and pushed O'Shea and Braiker out of the way (not to say THEY didn't make some questionable acquisition decisions, though) ... and watching people step in and out of roles with the company (not sure if Bill Sigmar is still in Anchorage, for example?) -- kind of left me wondering how long it would last in a questionable economy. Only difference between their situation and Citadel is Citadel was without ethics and exit strategy pre-scripted --- NNW was people who were trying to make the best of what they had handed to them in challenging times and walking away with limited options.

I often think what YOU are doing, Bill, is the exception -- but is clearly the formula that other people SHOULD be following. Pick a market, do well, super-serve 'em, and rinse, lather, repeat the following week. Clearly the "how big can our portfolio be" has not proven to be a good strategy for the majors -- or even operators who would care about this situation, such as Cherry Creek. Even Fisher still holding the ball on a limited number of regional properties (Montana) cuz no one wants em.
 
Well, it's a whole lot easier to withstand a downturn when you have no debt and no partners. On the other hand, it is difficult to grow without some debt and some leverage. Admittedly, this is a terrible time to have fire sale. It is, however, a great time for someone with cash to make a deal.
 
NNB is using a seldom used portion of state law called ABC, or Assignment for the Benefit of Creditors. It is much simpler and cheaper by a factor of 4 or 5 than Federal bankruptcy.

It's probably safe to assume that like many broadcasters with positive EBITDA they simply have too much debt. Pressing the reset button is a smart move. Now they can get back to running good radio stations (which I think they really try to do) instead of tangling with lawyers and clueless financial geniuses all day.
 
Gary,

You must have signed a new contract to buy for these two big eaters!

Time might be right for investing, I know there are some on this board with capital.

BTW, after you guys break it down, please file a complete report here so its gets the once over by Bong and Scott.
(lol)
 
Okay, Crowski, after I get back from the Radio Ink Convergence thing in Mountain View. I of course will be ready to totally change the world...

Wolf
 
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