You have to break the law to pay a fine. Being stupid isn't against the law. Having bad timing isn't against the law. Heck, even borrowing more money than you can repay isn't against the law, as we've discovered. I mean, the baboons that practically destroyed our financial system aren't paying any fines. The heads of Fannie & Freddie aren't paying any fines. So why should some over-zealous broadcasters? Start with the real crooks, and I'll agree.
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
You are using an out of date browser. It may not display this or other websites correctly.
You should upgrade or use an alternative browser.
You should upgrade or use an alternative browser.
The Cobra Meets The Rattlesnake
- Thread starter Element9
- Start date
From Taylor On Radio, 5/6/10
Citadel wants to tear up part of its 2006 deal with Disney – but Disney owns names like “WABC”, “WLS”, “KGO”, “ABC Radio”
That could definitely give you some leverage.
The sharp Disney lawyers say it’s negotiating1 with Citadel, but that Citadel can’t reject part of the 2006 sale package but keep the intellectual property licenses for some of its biggest stations and properties – not to mention domain names like “ABCRadio.com.”
So to protect itself, The Walt Disney Company files a “reservation of rights” with the bankruptcy court in New York that’s overseeing Citadel’s passage through Chapter 11. Among the IP (intellectual property) rights it asserts are ownership of these marks – KABC, KGO, ABC, KGO Newstalk, WABC and WLS. These URLs – KABC.com, KGOAM810.com, KGORadio.net, KGORadio.org, WABCRadio.com, WLSAM.com.
These trademarks – “ABC Radio”, "ABC Radio Networks” (of course Citadel switched to “Citadel Media” a while back), plus a bunch of sales-network names. And URLs such as ABCradio.com, ABCRadioChicago.com, ABCTexas.com, and a bunch more. Disney lawyer Martin Bienenstock says Disney “requests that this court deny the debtors’ request to assume the IP licenses except as part of a [larger] settlement.”
---
If nothing else, this gives us a glimpse of some parts of the Citadel-ABC deal. It makes you wonder just how some parts of the deal were put together and also calls to mind Price Communications' purchase of WKBW radio. CapCities retained the WKBW call letters for Channel 7 while radio became WWKB (some suggest it stood for "We Were KB.") The WKBW call letters were more valuable to radio than TV. The radio call letter change signaled the beginning of the end. These days, Channel 7 mentions the call letters only rarely, such as TOH ID. KB Radio? A mere shadow of its former being. Come to think of it, the same applies Channel 7.
1translation: "this is the way it's going to be..."
Citadel wants to tear up part of its 2006 deal with Disney – but Disney owns names like “WABC”, “WLS”, “KGO”, “ABC Radio”
That could definitely give you some leverage.
The sharp Disney lawyers say it’s negotiating1 with Citadel, but that Citadel can’t reject part of the 2006 sale package but keep the intellectual property licenses for some of its biggest stations and properties – not to mention domain names like “ABCRadio.com.”
So to protect itself, The Walt Disney Company files a “reservation of rights” with the bankruptcy court in New York that’s overseeing Citadel’s passage through Chapter 11. Among the IP (intellectual property) rights it asserts are ownership of these marks – KABC, KGO, ABC, KGO Newstalk, WABC and WLS. These URLs – KABC.com, KGOAM810.com, KGORadio.net, KGORadio.org, WABCRadio.com, WLSAM.com.
These trademarks – “ABC Radio”, "ABC Radio Networks” (of course Citadel switched to “Citadel Media” a while back), plus a bunch of sales-network names. And URLs such as ABCradio.com, ABCRadioChicago.com, ABCTexas.com, and a bunch more. Disney lawyer Martin Bienenstock says Disney “requests that this court deny the debtors’ request to assume the IP licenses except as part of a [larger] settlement.”
---
If nothing else, this gives us a glimpse of some parts of the Citadel-ABC deal. It makes you wonder just how some parts of the deal were put together and also calls to mind Price Communications' purchase of WKBW radio. CapCities retained the WKBW call letters for Channel 7 while radio became WWKB (some suggest it stood for "We Were KB.") The WKBW call letters were more valuable to radio than TV. The radio call letter change signaled the beginning of the end. These days, Channel 7 mentions the call letters only rarely, such as TOH ID. KB Radio? A mere shadow of its former being. Come to think of it, the same applies Channel 7.
1translation: "this is the way it's going to be..."
From Taylor On Radio, May 10, 2010
Citadel faces a confirmation hearing on Wednesday, though with some dissent.
But Farid Suleman – whose continued employment as CEO was the subject of a 77-page bankruptcy court filing on Friday – still has shareholder Aurelius Capital biting at his ankles. And Aurelius is now joined by Virtus Capital and the Kenneth S. Grossman Pension Plan. They’re all asking that the latest version of Citadel’s Chapter 11 bankruptcy re-organization be denied, on the grounds that it’s unfair to the shareholders and gives the senior lenders too much. Another development on Friday – Aurelius joins the “file under seal” brigade. We learn that Citadel (as the debtor) and Aurelius are in discovery mode. They’ve “entered into a confidentiality agreement” that precludes Aurelius (actually, the three separate funds advised by Aurelius) from revealing the results of what it finds out. But it can share them with the court, which is what this “under seal” request is about. Meanwhile, there’s a report to the court from Kurtzman Carson Consultants that 96.07% of the senior secured creditors accept the latest version of the Citadel plan. And 89.77% of the general unsecured creditors do. In some cases the creditors abstained, or filed late.
---
"File under seal" means the little people (aka, "the public, employees past and present, and unsecured creditors") won't get a chance to look at Citadel's books, but because there could be something amiss, the judge will. In bankruptcy, the usual concern is how the money that's available is parceled out. There are both secured and unsecured creditors. Secured creditors who have legal paperwork in which the debtor acknowledges its obligation and the creditors' right to be paid, get first crack. Seems like these guys are using "discovery" to get a look at Citadel's books and Citadel wants to keep what is learned under wraps from the other creditors. The judge gets to see the results, so that should minimize the legal maneuvering, e.g., Citadel claiming it doesn't have the money when the books say otherwise; how much money may be available, or vice versa, Citadel being able to show it doesn't have the money and perhaps more important, where the money went (CEO, CFO, upper management, etc.) Bankruptcy law is known to be extremely tedious, only slightly more tedious than my posts. Book keeping needs to be produced and inspected. It helps to be well versed in the "tricks of the trade" and corporate slight of hand, not that Citadel or Suleman would resort to such chicanery.
Citadel faces a confirmation hearing on Wednesday, though with some dissent.
But Farid Suleman – whose continued employment as CEO was the subject of a 77-page bankruptcy court filing on Friday – still has shareholder Aurelius Capital biting at his ankles. And Aurelius is now joined by Virtus Capital and the Kenneth S. Grossman Pension Plan. They’re all asking that the latest version of Citadel’s Chapter 11 bankruptcy re-organization be denied, on the grounds that it’s unfair to the shareholders and gives the senior lenders too much. Another development on Friday – Aurelius joins the “file under seal” brigade. We learn that Citadel (as the debtor) and Aurelius are in discovery mode. They’ve “entered into a confidentiality agreement” that precludes Aurelius (actually, the three separate funds advised by Aurelius) from revealing the results of what it finds out. But it can share them with the court, which is what this “under seal” request is about. Meanwhile, there’s a report to the court from Kurtzman Carson Consultants that 96.07% of the senior secured creditors accept the latest version of the Citadel plan. And 89.77% of the general unsecured creditors do. In some cases the creditors abstained, or filed late.
---
"File under seal" means the little people (aka, "the public, employees past and present, and unsecured creditors") won't get a chance to look at Citadel's books, but because there could be something amiss, the judge will. In bankruptcy, the usual concern is how the money that's available is parceled out. There are both secured and unsecured creditors. Secured creditors who have legal paperwork in which the debtor acknowledges its obligation and the creditors' right to be paid, get first crack. Seems like these guys are using "discovery" to get a look at Citadel's books and Citadel wants to keep what is learned under wraps from the other creditors. The judge gets to see the results, so that should minimize the legal maneuvering, e.g., Citadel claiming it doesn't have the money when the books say otherwise; how much money may be available, or vice versa, Citadel being able to show it doesn't have the money and perhaps more important, where the money went (CEO, CFO, upper management, etc.) Bankruptcy law is known to be extremely tedious, only slightly more tedious than my posts. Book keeping needs to be produced and inspected. It helps to be well versed in the "tricks of the trade" and corporate slight of hand, not that Citadel or Suleman would resort to such chicanery.
I think all of this gets back to what I was saying last year: Bankruptcy is not something any company enters lightly. There isn't a whole lot of upside when the vultures start swirling around the carcus.
The problem in looking at valuation is that the property is now worth a fraction of what they paid for it. That's why they're in bankruptcy. So obviously, some shareholders, especially those who were there for the merger, feel the company is now undervalued. The truth can often come as a shock to those involved.
The problem in looking at valuation is that the property is now worth a fraction of what they paid for it. That's why they're in bankruptcy. So obviously, some shareholders, especially those who were there for the merger, feel the company is now undervalued. The truth can often come as a shock to those involved.
Yet the "team" who pimped and engineered the deal will remain employed...
More than likely, Stakelin isn't in the bread line these days. Probably has enough to buy a "Michigan." Topping today's broadcast bankruptcy blotter (Irv turned 80 a few weeks ago) here's the latest Can-I-Get-A-Witness-News from Taylor On Radio, 5/12/10:
Citadel's Farid Suleman hopes to win confirmation of his Chapter 11 re-org today.
Though the contrasting expectations of Citadel – that the court time will be just one day, today – and dissident shareholder Aurelius Capital (twice as long) suggest that Aurelius isn’t just going away. However, Citadel did make the “limited objection” of another party involved in the case go away.
Without stating a reason, Oak Ridge FM Inc. withdraws its objection to the deal. It claimed it hadn’t gotten its last two months of LMA payments for Knoxville-market WNOX-FM plus over 20 grand in administrative payments. Sounds like the squeaky wheel got a little grease. The bigger roadblock is still Aurelius. It insists that the terms of the Chapter 11 re-organization plan are screwing the shareholders versus the secured lenders.
What will today’s confirmation hearing look like?
New York-based federal bankruptcy judge Burton Lifland will hear witnesses beginning with CEO Farid Suleman, discussing the reasons and timing behind Citadel’s December 20 Chapter 11 filing. He’ll be followed by CFO Randy Taylor. Expert witnesses will include experts on bankruptcies. Citadel expects to sail out of Chapter 11 with two-thirds of its debt trimmed off, like dead weight that’s kept it from flying. More coverage of today’s confirmation hearing in Thursday’s TRI Newsletter.
Citadel's Farid Suleman hopes to win confirmation of his Chapter 11 re-org today.
Though the contrasting expectations of Citadel – that the court time will be just one day, today – and dissident shareholder Aurelius Capital (twice as long) suggest that Aurelius isn’t just going away. However, Citadel did make the “limited objection” of another party involved in the case go away.
Without stating a reason, Oak Ridge FM Inc. withdraws its objection to the deal. It claimed it hadn’t gotten its last two months of LMA payments for Knoxville-market WNOX-FM plus over 20 grand in administrative payments. Sounds like the squeaky wheel got a little grease. The bigger roadblock is still Aurelius. It insists that the terms of the Chapter 11 re-organization plan are screwing the shareholders versus the secured lenders.
What will today’s confirmation hearing look like?
New York-based federal bankruptcy judge Burton Lifland will hear witnesses beginning with CEO Farid Suleman, discussing the reasons and timing behind Citadel’s December 20 Chapter 11 filing. He’ll be followed by CFO Randy Taylor. Expert witnesses will include experts on bankruptcies. Citadel expects to sail out of Chapter 11 with two-thirds of its debt trimmed off, like dead weight that’s kept it from flying. More coverage of today’s confirmation hearing in Thursday’s TRI Newsletter.
Element9 said:More than likely, Stakelin isn't in the bread line these days.
The point is that he's no longer running the ship. Last time I checked, tar and feathering is not part of the bankruptcy process. This is business, not personal. If people wanted it to be personal, and to have "justice" done to some bad people, the time to do it was before they filed for bankruptcy. Now everything is neat and legal.
This is business, not personal.[/quote
A simple quote...a not so easy question hanging out there to ask....
Is the Radio Industry a business, or an entertainment medium?
Postulate follow-up question: Can they co-exist?
(as the Jeopardy Final answer bed fades up...you have 30 seconds..have at it)
That's all
heydaybegone said:Is the Radio Industry a business, or an entertainment medium?
When you're in bankruptcy court, it's a business. Nothing else matters.
Could they have prevented bankruptcy by being more entertaining? Based on what I see, no.
TheBigA said:When you're in bankruptcy court, it's a business. Nothing else matters.
Could they have prevented bankruptcy by being more entertaining? Based on what I see, no.
They sure could have prevented bankruptcy by being better businessmen.
The outcome of Citadel's "day in court" is still in doubt, but the arguements are interesting. Raddio Ink has a nice summary at http://www.radioink.com/Article.asp?id=1803070&spid=24698.
You can't beat Farid & Company's unintended humor:
Citadel also defends the company's valuation under the reorganization plan, saying the "projections and valuation were conducted with care, good judgment, and focus."
If they'd used "care, good judgment, and focus" in the first place, and properly valued the properties that they purchased from ABC/Disney, they wouldn't have ended up in Bankruptcy court.
You can't beat Farid & Company's unintended humor:
Citadel also defends the company's valuation under the reorganization plan, saying the "projections and valuation were conducted with care, good judgment, and focus."
If they'd used "care, good judgment, and focus" in the first place, and properly valued the properties that they purchased from ABC/Disney, they wouldn't have ended up in Bankruptcy court.
SirRoxalot said:They sure could have prevented bankruptcy by being better businessmen.
As many others have pointed out, no one could have predicted the collapse of the ad market that happened just as the Disney deal was being completed.
SirRoxalot said:If they'd used "care, good judgment, and focus" in the first place, and properly valued the properties that they purchased from ABC/Disney, they wouldn't have ended up in Bankruptcy court.
Once again, the record shows that they did. But circumstances occured that were outside normal business practices. Otherwise, the world would not be in the financial situation it's in.
I don't know if you've ever bought a house, but the "comps" the price is based on doesn't take into account a real estate collapse. It simply takes a look back about six months at comparable prices. That's how they valued these stations in 2004, and how they're valuing them now.
I have purchased a house. I also was smart enough to realize that I couldn't afford as much house as the bank was willing to let me buy.
Recessions happen - about every 20 years. After watching the dot-com bust, the Enron energy bust, and the vagaries of energy & oil prices over the last 15 years, it didn't take a genius to recognize either the housing bubble or rapid run-up in radio station prices. And the guys who run these companies are SUPPOSED to be geniuses.
Let's face it, they were part of manipulating the prices. Citadel just didn't get out in time. Luckily, Teddy Forstmann had taken Citadel private, and recouped his initial investment and a tidy profit before the ABC/Disney deal. Who got stung? The shareholders. The guys doing the stinging profited handsomely, and continue to line their pockets.
Meanwhile, the product suffers, the people who produce the product have some version of "less is more" shoved down their throats, and the bankers sit there looking like Scrooge and Marley.
Recessions happen - about every 20 years. After watching the dot-com bust, the Enron energy bust, and the vagaries of energy & oil prices over the last 15 years, it didn't take a genius to recognize either the housing bubble or rapid run-up in radio station prices. And the guys who run these companies are SUPPOSED to be geniuses.
Let's face it, they were part of manipulating the prices. Citadel just didn't get out in time. Luckily, Teddy Forstmann had taken Citadel private, and recouped his initial investment and a tidy profit before the ABC/Disney deal. Who got stung? The shareholders. The guys doing the stinging profited handsomely, and continue to line their pockets.
Meanwhile, the product suffers, the people who produce the product have some version of "less is more" shoved down their throats, and the bankers sit there looking like Scrooge and Marley.
Bloomberg News reports the Court will approve Citadel's bankruptcy plan. I hope this is good news for our friends in the Buffalo cluster.
- Status
- This thread has been closed due to inactivity. You can create a new thread to discuss this topic.