Winning bid -- $9 million for 990 AM

[Phantom]

by D.B. Zwirn.

The other bidders for 990 AM and 700 AM included Mortenson Broadcasting, John Douglas (Mercury Radio), Radio Xavier, Everest Theaters and Metro Broadcasting.

The debtor for the two station is Dave Schum's The Watch, Ltd.

A bankruptcy judge must approve the bid.

 

[ChrisTheListener]

> by D.B. Zwirn.
>
> The other bidders for 990 AM and 700 AM included Mortenson
> Broadcasting, John Douglas (Mercury Radio), Radio Xavier,
> Everest Theaters and Metro Broadcasting.
>
> The debtor for the two station is Dave Schum's The Watch,
> Ltd.
>
> A bankruptcy judge must approve the bid.
>

Apparently Zwirn is not a broadcaster. He's a creditor.

So I heard there is a chance that some of the other broadcasters involved could make deals to work under them.

Also, don't forget that they were auctioning off 700 KHSE aswell. It has not been on the air, i don't think ever, but that small station (it is currently under a construction permit from the FCC) went along with KFCD 990. Zwirn ownes both.

Interesting, but we will see.

CTL<P ID="signature">______________
"Welcome to radio-info.com...where we hate everything!!!!! You people are radio's equivalent to the two old guys in the balcony on the Muppet show!"
~FoReal?</P>

 

[Radio-vet]

So, if we do the math...

Dave Schum owed his creditors (D.B. Zwirn) somewhere between $9M and 10M. The winning bid is $9M. That likely means the creditor simply takes it over for the amount owed on the debt and nothing more. Or, in other words, all those former employees hoping to get some of their back pay have lost any hope of getting a penny.

The only bright light in this whole affair is that Schum has lost his company.

> > by D.B. Zwirn.
> >
> > The other bidders for 990 AM and 700 AM included Mortenson
>
> > Broadcasting, John Douglas (Mercury Radio), Radio Xavier,
> > Everest Theaters and Metro Broadcasting.
> >
> > The debtor for the two station is Dave Schum's The Watch,
> > Ltd.
> >
> > A bankruptcy judge must approve the bid.
> >
>
> Apparently Zwirn is not a broadcaster. He's a creditor.
>
> So I heard there is a chance that some of the other
> broadcasters involved could make deals to work under them.
>
> Also, don't forget that they were auctioning off 700 KHSE
> aswell. It has not been on the air, i don't think ever, but
> that small station (it is currently under a construction
> permit from the FCC) went along with KFCD 990. Zwirn ownes
> both.
>
> Interesting, but we will see.
>
> CTL
>

 

[nuzguy]

> So, if we do the math...
>
> Dave Schum owed his creditors (D.B. Zwirn) somewhere between
> $9M and 10M. The winning bid is $9M. That likely means the
> creditor simply takes it over for the amount owed on the
> debt and nothing more. Or, in other words, all those former
> employees hoping to get some of their back pay have lost any
> hope of getting a penny.
>
> The only bright light in this whole affair is that Schum has
> lost his company.
>
> > > by D.B. Zwirn.
> > >
> > > The other bidders for 990 AM and 700 AM included
> Mortenson
> >
> > > Broadcasting, John Douglas (Mercury Radio), Radio
> Xavier,
> > > Everest Theaters and Metro Broadcasting.
> > >
> > > The debtor for the two station is Dave Schum's The
> Watch,
> > > Ltd.
> > >
> > > A bankruptcy judge must approve the bid.
> > >
> >
> > Apparently Zwirn is not a broadcaster. He's a creditor.
> >
> > So I heard there is a chance that some of the other
> > broadcasters involved could make deals to work under them.
>
> >
> > Also, don't forget that they were auctioning off 700 KHSE
> > aswell. It has not been on the air, i don't think ever,
> but
> > that small station (it is currently under a construction
> > permit from the FCC) went along with KFCD 990. Zwirn
> ownes
> > both.
> >
> > Interesting, but we will see.
> >
> > CTL

The math most always favors the (morally, ethically, financially) bankrupt owners, in all their uncaring and inept ways. And the workers get what gilted workers usually get,_______________. (Fill in your descriptive term for it)
> >
>

 

[longtimelistener]

> So, if we do the math...
>
> Dave Schum owed his creditors (D.B. Zwirn) somewhere between
> $9M and 10M. The winning bid is $9M. That likely means the
> creditor simply takes it over for the amount owed on the
> debt and nothing more. Or, in other words, all those former
> employees hoping to get some of their back pay have lost any
> hope of getting a penny.
>
> The only bright light in this whole affair is that Schum has
> lost his company.


I thought the total "secured" liabilities of the Watch were closer to $11 million. In that case, Zwirn would pay out $1 million to the other creditors, since they were owed $8 million by the Watch & had the first lien.

Zwirn is an investment firm. They run hedge funds, do venture capital deals etc.
They don't own and/or operate businesses. It will be interesting to see what they do with those two stations while I assume they try to sell them to one of the other bidders. Since the demographics of both signals' coverage area would be of little or no interest to a spanish broadcaster, I really can't imagine what kind of programming anyone would expect to make money with.