WBAI Struggles

[RBRadioWaves]

Re: WBAI massive layoffs

Well, folks, today is the last day of employment for WBAI's staff.

Just to let you know, according to the website, there will be a fundraiser on the 26th. It looks like this could be their last shot at survival. Also letting you know that their "emergency transmitter fund" is at $382,179, which is $117,281 short of what they need.

Who knows what will happen come midnight.

 

[XCountry285]

Re: WBAI massive layoffs

Come midnight: silence...or static

 

[davideduardo]

Re: WBAI massive layoffs

Come midnight: silence...or static

Before it comes to that, they will plug the ESB transmitter into one of the other Pacifica stations or feed programming prepared in California.

 

[BarryATL]

Re: WBAI massive layoffs

I thought they are laying off most of the staff, but are keeping a few folks. Did I miss a change in the plan?

 

[RBRadioWaves]

Re: WBAI massive layoffs

I'm going to launch TuneIn and let it record WBAI tonight. I could have the end of WBAI by tomorrow morning.

WBAI will probably just go off in the middle of a word. Think something similar to the end of FM News 101.9 from 363 days and 11 hours ago to about this moment (yes, I counted). It will probably just be a cut, maybe a brief goodbye announcement, and then... static. Or maybe programming from California.

All we know is... WBAI as we knew it for the past 53 years is at death's doorstep.

 

[davideduardo]

Re: WBAI massive layoffs

I thought they are laying off most of the staff, but are keeping a few folks. Did I miss a change in the plan?

I saw several reports that the union had prevented the layoffs... but nothing seems to have been reported in the last few days.

In any case, there was never any announcement about closing the station or letting go the entire staff.

 

[WNTIRadio]

Re: WBAI massive layoffs

Okay, if the union prevented the layoffs, where is the money coming from to pay these people?

They will have to keep a couple of full time employees, well at least one, to satisfy the license requirements of a "meaningful management presence".

 

[jmtillery]

Re: WBAI massive layoffs

Station owner here ended up loosing his station, even his house to the Bank that was his biggest creditor.
Is there some kind of clause in the Empire lease that they can sieze equipment if the leasor defaults on payments? That's also what happened here. Equipment siezed before bankruptcy was filed.

A Chapter 11 Reorganization filed with the courts under the Federal bankruptcy laws will prevent any equipment seizures or any enforcement against the creditor if the filing is made before any equipment is seized. Keep in mind nothing can be seized without a court order, so any creditor who wants to take possession of any assets as a means of paying off the debt or for any other reason will need to file a petition in court and ask a judge to grant the petition to take possession. Otherwise, taking possession without a court order is theft.

I will also add that once a petition for reorganization under Chapter 11 is filed with the courts, all creditor collection comes to a stop until the court makes a decision. So, by simply filing, WBAI can stop any further action from creditors and at least buy more time for themselves.

 

[MoldaMania182]

Re: WBAI massive layoffs

Station owner here ended up loosing his station, even his house to the Bank that was his biggest creditor.
Is there some kind of clause in the Empire lease that they can sieze equipment if the leasor defaults on payments? That's also what happened here. Equipment siezed before bankruptcy was filed.

A Chapter 11 Reorganization filed with the courts under the Federal bankruptcy laws will prevent any equipment seizures or any enforcement against the creditor if the filing is made before any equipment is seized. Keep in mind nothing can be seized without a court order, so any creditor who wants to take possession of any assets as a means of paying off the debt or for any other reason will need to file a petition in court and ask a judge to grant the petition to take possession. Otherwise, taking possession without a court order is theft.

I will also add that once a petition for reorganization under Chapter 11 is filed with the courts, all creditor collection comes to a stop until the court makes a decision. So, by simply filing, WBAI can stop any further action from creditors and at least buy more time for themselves.

Largely wishful thinking. A noncomm radio station isn't a typical business filing for Chap 11. What real assets? What real income? Sure there is some debt, but this is a classic case of simply not affording monthly costs. The business model is upside down; a filing would be a small speed bump on the road of inevitability at best. These guys can't even get a 2012 audit submitted, you really expect a plan to self sustainability?

 

[davideduardo]

Re: WBAI massive layoffs

Largely wishful thinking. A noncomm radio station isn't a typical business filing for Chap 11. What real assets?

Real assets? A commercial band license that is worth $70 to $80 million as a stick.

Creditors are secured by the value of the license.

 

[jmtillery]

Re: WBAI massive layoffs

Station owner here ended up loosing his station, even his house to the Bank that was his biggest creditor.
Is there some kind of clause in the Empire lease that they can sieze equipment if the leasor defaults on payments? That's also what happened here. Equipment siezed before bankruptcy was filed.

A Chapter 11 Reorganization filed with the courts under the Federal bankruptcy laws will prevent any equipment seizures or any enforcement against the creditor if the filing is made before any equipment is seized. Keep in mind nothing can be seized without a court order, so any creditor who wants to take possession of any assets as a means of paying off the debt or for any other reason will need to file a petition in court and ask a judge to grant the petition to take possession. Otherwise, taking possession without a court order is theft.

I will also add that once a petition for reorganization under Chapter 11 is filed with the courts, all creditor collection comes to a stop until the court makes a decision. So, by simply filing, WBAI can stop any further action from creditors and at least buy more time for themselves.

Largely wishful thinking. A noncomm radio station isn't a typical business filing for Chap 11. What real assets? What real income? Sure there is some debt, but this is a classic case of simply not affording monthly costs. The business model is upside down; a filing would be a small speed bump on the road of inevitability at best. These guys can't even get a 2012 audit submitted, you really expect a plan to self sustainability?

What Pacifica Foundation and WBAI does is their business. And, while a not-for-profit organization does not operate identical to a for-profit business entity, the business aspect of a not-for-profit organization is the same as a for-profit entity, and furthermore, a not-for-profit organization may file for bankruptcy protection same as a for-profit business entity. ANYONE may file for bankruptcy protection using any of the various bankruptcy chapters available for the type protection sought.

As for assets, WBAI holds a license for a valuable commercial class B frequency in the nation's largest radio market - New York City - with, as David Eduardo explained to you, has a $70-million minimum stick FMV and may go as high as $100-million, not including other intangible assets such as its antenna lease on the ESB and tangible assets such as its broadcasting equipment. The last time I checked, an asset valued at between $70-million and $100-million is an extremely valuable asset worth protecting.

 

[MoldaMania182]

Re: WBAI massive layoffs

What Pacifica Foundation and WBAI does is their business. And, while a not-for-profit organization does not operate identical to a for-profit business entity, the business aspect of a not-for-profit organization is the same as a for-profit entity, and furthermore, a not-for-profit organization may file for bankruptcy protection same as a for-profit business entity. ANYONE may file for bankruptcy protection using any of the various bankruptcy chapters available for the type protection sought.

As for assets, WBAI holds a license for a valuable commercial class B frequency in the nation's largest radio market - New York City - with, as David Eduardo explained to you, has a $70-million minimum stick FMV and may go as high as $100-million, not including other intangible assets such as its antenna lease on the ESB and tangible assets such as its broadcasting equipment. The last time I checked, an asset valued at between $70-million and $100-million is an extremely valuable asset worth protecting.

Gee, thanks Captain obvious, I clearly had NO idea how that worked. How did I ever earn my MBA. /s

 

[jmtillery]

Re: WBAI massive layoffs

What Pacifica Foundation and WBAI does is their business. And, while a not-for-profit organization does not operate identical to a for-profit business entity, the business aspect of a not-for-profit organization is the same as a for-profit entity, and furthermore, a not-for-profit organization may file for bankruptcy protection same as a for-profit business entity. ANYONE may file for bankruptcy protection using any of the various bankruptcy chapters available for the type protection sought.

As for assets, WBAI holds a license for a valuable commercial class B frequency in the nation's largest radio market - New York City - with, as David Eduardo explained to you, has a $70-million minimum stick FMV and may go as high as $100-million, not including other intangible assets such as its antenna lease on the ESB and tangible assets such as its broadcasting equipment. The last time I checked, an asset valued at between $70-million and $100-million is an extremely valuable asset worth protecting.

Gee, thanks Captain obvious, I clearly had NO idea how that worked. How did I ever earn my MBA. /s

Your first response indicated that what was originally posted regarding how a possible bankruptcy would protect WBAI's assets was not so obvious to you for several reasons, namely when you implied WBAI has no assets to protect since it is a non-commercial FM operated by a not-for-profit organization. Even Mr. Eduardo, whom I have the highest professional respect, interpreted your comment the same as I did since you implied that you disagreed with the original comment regarding a possible bankruptcy for WBAI as a means to buy time and protect itself from creditors while a reorganization is planned and implemented; hence, the reason for the detailed explanation from Mr. Eduardo and I to help you better understand the overall concept and reasoning behind the possibility of a chapter 11 reorganization. MBA or not, it was apparent from your own words that it wasn't so obvious to you.

 

[MoldaMania182]

Re: WBAI massive layoffs

What Pacifica Foundation and WBAI does is their business. And, while a not-for-profit organization does not operate identical to a for-profit business entity, the business aspect of a not-for-profit organization is the same as a for-profit entity, and furthermore, a not-for-profit organization may file for bankruptcy protection same as a for-profit business entity. ANYONE may file for bankruptcy protection using any of the various bankruptcy chapters available for the type protection sought.

As for assets, WBAI holds a license for a valuable commercial class B frequency in the nation's largest radio market - New York City - with, as David Eduardo explained to you, has a $70-million minimum stick FMV and may go as high as $100-million, not including other intangible assets such as its antenna lease on the ESB and tangible assets such as its broadcasting equipment. The last time I checked, an asset valued at between $70-million and $100-million is an extremely valuable asset worth protecting.

Gee, thanks Captain obvious, I clearly had NO idea how that worked. How did I ever earn my MBA. /s

Your first response indicated that what was originally posted regarding how a possible bankruptcy would protect WBAI's assets was not so obvious to you for several reasons, namely when you implied WBAI has no assets to protect since it is a non-commercial FM operated by a not-for-profit organization. Even Mr. Eduardo, whom I have the highest professional respect, interpreted your comment the same as I did since you implied that you disagreed with the original comment regarding a possible bankruptcy for WBAI as a means to buy time and protect itself from creditors while a reorganization is planned and implemented; hence, the reason for the detailed explanation from Mr. Eduardo and I to help you better understand the overall concept and reasoning behind the possibility of a chapter 11 reorganization. MBA or not, it was apparent from your own words that it wasn't so obvious to you.

Ah yes, typical legal rambling with leading assumptions.
It was obvious. The point still stands they cant even raise 500k in half a year, never mind try to get credit against the one very valuable asset they have. They have virtually no income, and what they do is in decline. It's not like they had to swallow a bad business transaction and need to time to regroup, they are failing. period. They've already liquidated some of their long term investments just to pay people. This isn't a 'traditional' business, this is a highly dysfunctional and unpredictable organization. Sure you can take your legal route/defense, I'll stick the the reality and my first point; a small speed bump on the road of inevitability.

 

[jmtillery]

Re: WBAI massive layoffs

What Pacifica Foundation and WBAI does is their business. And, while a not-for-profit organization does not operate identical to a for-profit business entity, the business aspect of a not-for-profit organization is the same as a for-profit entity, and furthermore, a not-for-profit organization may file for bankruptcy protection same as a for-profit business entity. ANYONE may file for bankruptcy protection using any of the various bankruptcy chapters available for the type protection sought.

As for assets, WBAI holds a license for a valuable commercial class B frequency in the nation's largest radio market - New York City - with, as David Eduardo explained to you, has a $70-million minimum stick FMV and may go as high as $100-million, not including other intangible assets such as its antenna lease on the ESB and tangible assets such as its broadcasting equipment. The last time I checked, an asset valued at between $70-million and $100-million is an extremely valuable asset worth protecting.

Gee, thanks Captain obvious, I clearly had NO idea how that worked. How did I ever earn my MBA. /s

Your first response indicated that what was originally posted regarding how a possible bankruptcy would protect WBAI's assets was not so obvious to you for several reasons, namely when you implied WBAI has no assets to protect since it is a non-commercial FM operated by a not-for-profit organization. Even Mr. Eduardo, whom I have the highest professional respect, interpreted your comment the same as I did since you implied that you disagreed with the original comment regarding a possible bankruptcy for WBAI as a means to buy time and protect itself from creditors while a reorganization is planned and implemented; hence, the reason for the detailed explanation from Mr. Eduardo and I to help you better understand the overall concept and reasoning behind the possibility of a chapter 11 reorganization. MBA or not, it was apparent from your own words that it wasn't so obvious to you.

Ah yes, typical legal rambling with leading assumptions.
It was obvious. The point still stands they cant even raise 500k in half a year, never mind try to get credit against the one very valuable asset they have. They have virtually no income, and what they do is in decline. It's not like they had to swallow a bad business transaction and need to time to regroup, they are failing. period. They've already liquidated some of their long term investments just to pay people. This isn't a 'traditional' business, this is a highly dysfunctional and unpredictable organization. Sure you can take your legal route/defense, I'll stick the the reality and my first point; a small speed bump on the road of inevitability.

While I thank you for the compliment regarding my "legal rambling", there are no assumptions on my part regarding any portion of this topic. I am, however, re-stating and paraphrasing what you actually wrote.

Also, you have a right to your opinion and I will respect that even though I may not agree with it. And, again, while there are no assumptions on my part, you, on the other hand, have implied that I believe Pacifica Foundation and WBAI is a "normal" business enterprise when in fact I never stated nor did I imply that Pacifica and WBAI is anything other than an organization that has current financial issues that need to be addressed and dealt with immediately. I did not offer any speculation, insight or any opinions as to what I believe led to the current financial crisis. From your comments, you assumed that you already knew my opinion when in fact I never stated nor implied what any of my thoughts are about the organization other than my thoughts consisted of a solution to the current financial issue WBAI's decision makers are being face with.

Whether you agree or not, the fact remains there are options available to 99.5 if WBAI and parent Pacific so chose to take advantage of those options. I will agree with your assessment that the entire organization is dysfunctional which is why WBAI is where it is today with the financial issues it is facing today. Also, based on past managerial decisions, chances are very high Pacifica will not exercise any of the viable options available that will actually save the station. I am, however, offering possible solutions to the problem. Whether anyone at WBAI or Pacific Foundation who can actually make a decision makes the decision to do something that is actually productive in identifying a real solution is doubtful, largely because too many people on the Pacifica Foundation Board of Directors have to agree, and they usually spend more time disagreeing, before anything can be done.

 

[BarryATL]

Re: WBAI massive layoffs

Bankruptcy may not be an option. All of the Pacifica stations stations are licensed to Pacifica Foundation, Inc. That list includes:

99.5 WBAI New York, NY
89.3 WPFW Washington, DC
90.1 KPFT Houston, TX
94.1 KPFA Berkeley, CA
89.3 KPFB Berkeley, CA
90.7 KPFK Los Angeles, CA

Unless there has been some fancy footwork done with operating companies vs. license holding companies, if WBIA goes into bankruptcy, then all of the stations go into bankruptcy. That really complicates matters.

 

[jmtillery]

Re: WBAI massive layoffs

Bankruptcy may not be an option. All of the Pacifica stations stations are licensed to Pacifica Foundation, Inc. That list includes:

99.5 WBAI New York, NY
89.3 WPFW Washington, DC
90.1 KPFT Houston, TX
94.1 KPFA Berkeley, CA
89.3 KPFB Berkeley, CA
90.7 KPFK Los Angeles, CA

Unless there has been some fancy footwork done with operating companies vs. license holding companies, if WBIA goes into bankruptcy, then all of the stations go into bankruptcy. That really complicates matters.

Yes it does complicate matters, and considering WPFW is also having financial problems, it stands to reason the remaining stations may not be far behind. My point is a chapter 11 (also known as Debtor in Possession) may be an option in that it allows the parent organization an opportunity to reorganize while staving off creditors while a reorganization plan is worked out. One possible solution as part of the reorganization may be to sell the two commercial class B frequencies (KPFA 94.1 Berkeley and WBAI 99.5 New York) for cash, replacing them with NCE frequencies. This will give Pacifica the much needed cash to pay off its debts and leave cash reserves for Pacifica Foundation to continue operating the foundation and the individual stations while still having comparable FM signals in each of Pacifica's existing markets. Under this option Pacifica is losing nothing and actually gaining much needed cash reserves.

On a final note, my original comment was in answer to another poster's question regarding a creditor seizing assets from a debtor rather than asserting a Chapter 11 filing is what WBAI should do. My answer was very specific in general terms regarding bankruptcy, regardless who files, and not specific to WBAI although WBAI became the default example of an entity that may benefit from a chapter 11 filing.

 

[Barry]

Re: WBAI massive layoffs

The potential staff layoffs at WBAI have apparently been postponed from July 15 to July 31.

Article (scroll down a bit): http://justiceunity.com/joomla25X/

 

[WNTIRadio]

Re: WBAI massive layoffs

Where are these mysterious funds coming from to keep this thing going and pay people????

 

[nd2023]

Re: WBAI massive layoffs

Where are these mysterious funds coming from to keep this thing going and pay people????

They'll ask for handouts from their "parents" (Pacifica). Just like the Occupy people living in tents did.