Looks like Clark will come out smelling like a rose.....
https://licensing.fcc.gov/cgi-bin/w...xt=25&appn=101438481&formid=315&fac_num=49416
https://licensing.fcc.gov/cgi-bin/w...xt=25&appn=101438481&formid=315&fac_num=49416
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WCAP Sale Application on the FCC website
- Thread starter paulfromlowell
- Start date
http://www.lowellsun.com/breakingnews/ci_18661424
FAIR USE for discussion purposes COPYRIGHT LOWELL SUN
according to the purchase and sale agreement, signed June 28, and filed with the FCC, Poulten is paying co-owner Clark Smidt $90,000, plus $85,400 in 30 monthly "benefit" payments for his 55 percent of the station.
The payments are broken down to $50,000 that was to paid on July 5, $40,000 to be paid upon the final FCC approval of the transfer and $2,847 per month for 30 moths starting eight weeks from the closing date.
Additionally, Poulten was required to deposit $40,000 into the station's special operating account at the Lowell 5 Cent Savings Bank to be used for operating expenses and release Smidt from the responsibility of any past debt.
Read more: http://www.lowellsun.com/breakingnews/ci_18661424#ixzz1Um4OjR4R
FAIR USE for discussion purposes COPYRIGHT LOWELL SUN
according to the purchase and sale agreement, signed June 28, and filed with the FCC, Poulten is paying co-owner Clark Smidt $90,000, plus $85,400 in 30 monthly "benefit" payments for his 55 percent of the station.
The payments are broken down to $50,000 that was to paid on July 5, $40,000 to be paid upon the final FCC approval of the transfer and $2,847 per month for 30 moths starting eight weeks from the closing date.
Additionally, Poulten was required to deposit $40,000 into the station's special operating account at the Lowell 5 Cent Savings Bank to be used for operating expenses and release Smidt from the responsibility of any past debt.
Read more: http://www.lowellsun.com/breakingnews/ci_18661424#ixzz1Um4OjR4R
J
Jimc
Guest
Well....F#$#& ME!
I have said it before ... they vastly overpaid for this station. Interesting notes from the P&S:
They're behind on the note to the bank. Wouldn't ya think that the bank has a provision in mortgage that says they get first dibs on receipts?
Nothing to indicate whether Cohen was paid as per the original sale or whether he's on the list of creditors, presumably with a right to foreclose.
Poulten bought Smidt's share as an individual and not through his company YMSK LLC (your mother should know) which puts him on the hook personally for the unpaid debts. I wonder if that was a condition to getting financing.
Clark ends up with $175K, plus he saves having to pay half of the existing debt, so add half of their overdue and unpaid bills to what he gets in cash and double that figure (Ignore the half of the outstanding mortgage debt since that's based on the bloated original price) and you get what the station is worth today. I suspect it's the stick value plus equipment and whatever useless land they own for their antenna farm (I think I heard it's in some kind of state preserve which makes it something that can't be developed.) Operations and operating revenue, aren't worth doo-doo.
Two scenarios: One, the local newspaper scoops the station after it bottoms out. Two, cue the Khmer records.
They're behind on the note to the bank. Wouldn't ya think that the bank has a provision in mortgage that says they get first dibs on receipts?
Nothing to indicate whether Cohen was paid as per the original sale or whether he's on the list of creditors, presumably with a right to foreclose.
Poulten bought Smidt's share as an individual and not through his company YMSK LLC (your mother should know) which puts him on the hook personally for the unpaid debts. I wonder if that was a condition to getting financing.
Clark ends up with $175K, plus he saves having to pay half of the existing debt, so add half of their overdue and unpaid bills to what he gets in cash and double that figure (Ignore the half of the outstanding mortgage debt since that's based on the bloated original price) and you get what the station is worth today. I suspect it's the stick value plus equipment and whatever useless land they own for their antenna farm (I think I heard it's in some kind of state preserve which makes it something that can't be developed.) Operations and operating revenue, aren't worth doo-doo.
Two scenarios: One, the local newspaper scoops the station after it bottoms out. Two, cue the Khmer records.
It wouldn't mater if Sam bought the stock in his name, a corporate entity, or even a trust because just about every commercial note out there requires someone to personally guarantee it, especially when the physical assets are not worth what the amount of money being borrowed is.
There is no way that the transmitter site, towers, transmitter and studio facility are worth what the sale price was back at the top of the market. I am assuming they do not own the building where the studio is. The difference in value would be "goodwill" or some other fancy name for wishful thinking and some bank MUST HAVE BEEN OUT OF THEIR MIND to lend them that amount of money, personal guarantee or not.
There is no way that the transmitter site, towers, transmitter and studio facility are worth what the sale price was back at the top of the market. I am assuming they do not own the building where the studio is. The difference in value would be "goodwill" or some other fancy name for wishful thinking and some bank MUST HAVE BEEN OUT OF THEIR MIND to lend them that amount of money, personal guarantee or not.
I always found it odd that there were no mortgages filed by the bank on either Smidt or Poulten's homes or other real estate. Basically they filed on the transmitter site (which is wetlands and basically has NO value). Seems like the bank was giving money away (but then weren't they all in those days). (There is a pesky rumor around that the bank involved may be taken over by the feds soon).
The studio/office space is rented (and the landlord has been trying to get them out for 5 years). Cohen says he never got paid on the note he took back (500K) and plus they sued him shortly after the sale....so he actually got 1M less for it than the announced price (which was still wayyyyy over its value).
The studio/office space is rented (and the landlord has been trying to get them out for 5 years). Cohen says he never got paid on the note he took back (500K) and plus they sued him shortly after the sale....so he actually got 1M less for it than the announced price (which was still wayyyyy over its value).
Mess is an understatement.
The Department of Environmental Protection is mentioned in the P&S with regards to the transmitter site and the possibility of fines/actions. Poulten is on the hook for that.
The Lowell Development and Financial Corporation is one of the organizations Poulten has to get to release CS from his PG on the notes. Lowell 5 bank is the other. If the two lenders don't release CS from his obligations, Poulten is required to make CS whole. If Poulten goes belly up, along with Merrimack Valley Radio Inc and YMSK LLC, CS is on the hook for some big coin.
One of the stipulations is CS will have his health and life insurance paid for by Poulten until Poulten can get CS off the notes held by the bank and the LDFC, which should be a damn long time.
If CS can walk away from that very bad investment with about 100K in cash, and health insurance until Poulten can get new partners and or out from under the mountain of debt then he is the smartest SOB that ever lived.
The Department of Environmental Protection is mentioned in the P&S with regards to the transmitter site and the possibility of fines/actions. Poulten is on the hook for that.
The Lowell Development and Financial Corporation is one of the organizations Poulten has to get to release CS from his PG on the notes. Lowell 5 bank is the other. If the two lenders don't release CS from his obligations, Poulten is required to make CS whole. If Poulten goes belly up, along with Merrimack Valley Radio Inc and YMSK LLC, CS is on the hook for some big coin.
One of the stipulations is CS will have his health and life insurance paid for by Poulten until Poulten can get CS off the notes held by the bank and the LDFC, which should be a damn long time.
If CS can walk away from that very bad investment with about 100K in cash, and health insurance until Poulten can get new partners and or out from under the mountain of debt then he is the smartest SOB that ever lived.
City of Lowell apparently has a 37K lien on the property for unpaid property taxes on the antenna farm.
They sued Cohen after the sale? Anyone know what that was about?
I agree that Poultin probably had to guarantee corporate notes, but by taking 55 percent ownership as an individual, he opens the world to all sorts of claims. Didn't the Cohens have an issue with leaking PCBs from a former transmitter years ago? Do you think they spent the money to keep the site environmentally pristine?
I think they're hot-carting the Khmer records even as we speak
They sued Cohen after the sale? Anyone know what that was about?
I agree that Poultin probably had to guarantee corporate notes, but by taking 55 percent ownership as an individual, he opens the world to all sorts of claims. Didn't the Cohens have an issue with leaking PCBs from a former transmitter years ago? Do you think they spent the money to keep the site environmentally pristine?
I think they're hot-carting the Khmer records even as we speak
The most humorous part of the application is the part where they say the P & S will remain confidential. The second most humorous is the agreement to issue a joint statement seven days after closing "stating in substance that they have reached an amicable agreement."
As for the landlord, haven't they been above a barroom for 60 years? Renting a second floor in Lowell seems a pretty good thing for any landlord.
As for the landlord, haven't they been above a barroom for 60 years? Renting a second floor in Lowell seems a pretty good thing for any landlord.
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