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STATION: ‘Loose ends’ concern judge in Owens’ proposal to buy sister’s faltering TV stationContinued from A1* The price for the station was deter-* mined by tabulation of all debts plus $250,000 for Dorothy Owens.While not settling the issue of change of 1 ownership, Judge Brett Dorian did approve *a motion to allow Dorothy Owens Broad'* casting to borrow $60,000 to continue operat-* ing while letters are sent to all creditors.A hearing on any objection by the ; creditors would be heard Jan. 25 in bankruptcy court in Fresno.Court records showed the station owing $3,162,018 to secured creditors, including a ; $1.5 million loan with Wells Fargo Bank and ‘a $1.2 million loan with Union Bank. These* costs reflect the money needed to put the . station on the air.* Unsecured creditors were owed $476,098 I The largest creditors in that group included •six television production companies that 'supply the majority of the station’s syndi-; cated programming. Those companies included Columbia Pictures Television, ^Viacom, Paramount Television, LorimarTelepictures, Warner Brothers Television and MCA.The stumbling block in the proceedings was the insistence of Buck Owens Broadcasting that the approval of assuming all debts be coupled with the approval of the sale of the station. While the bankruptcy court could rule on the change of ownership of the company, the entire matter would not be settled until the Federal Communications Commission made its decision.The FCC must approve all transfers and a ruling by the government agency could come as quickly as January or as late as April. The $700,000 cost for getting a license was not part of the $4.5 million price tag.April 15 was the suggested date for the closing of the sale.“Mr. Owens is willing to take his chances with the FCC,” Wayne landau, attorney for Dorothy Owens Broadcasting, said.Attorney Robert McKinney, representing Wells Fargo Bank, said, “We have seen no disclosure statement. If the station is“Mr. Owens is willing to take his chances with the FCC ”—attorney Wayne Landauworth that amount, the argument is moot, but we don’t have any documented information.”The purchasing plan by Owens would be to pay 100 percent of all outstanding debts and to assume current contracts with the television production companies.Despite assurances by l^andau that he had a buyer in better financial shape than the current owner, Judge Dorian was reluctant to grant approval of the sale because there were “too many loose ends.”Landau stressed that if the sale wasn't approved, the only other option would be for the station to go off the air.Concerning the station going off the air, Dorothy Owens was emphatic that “the sta^on will continue to operate.”The ruling by the judge gave her comment credibility as the station will be able to use the $60,000 loan and a $200,000 cash collateral on the Wells Faigo agreement to continue operatingFinancial reports showed the station operating on a budget of $180,000 per month.Dorian would not rule on the approval of sale of the station to Buck Owens Broadcasting until all creditors had had an opportunity to respond. But, he did state that under the current guidelines he saw no reason the sale could not be approved.landau said he got the same response from FCC lawyers, who had told him an application by Buck Owens was progressing smoothly.Discussions of the operating expenses were held at a 341 hearing, which is open to all trustees and creditors who wish to ask questions concerning business practices which lead to a Chapter 11 filing. The Chapter 11 bankruptcy is designed to give a business protection from creditors while trying to reorganize its financial situation.The business is allowed to continue operating during that timeDuring the questioning, Dorothy Owens explained how her personal funds, an income tax refund and the proceeds from the sale of eight horses had been funneled into keeping the television station operatiiig. Her concerns over financial troubles started as early as March when she began looking for a potential buyer.While her brother has been the inqst viable purchaser, Owens has had a couple of inquiries about buying the station shape the Chapter 11 filing.l^andau said, “Everyone wanted a bargain though. When we explained we had abuyer ready to pay 100 cents on the dollar, the others were no longer interested.”In a related matter, an agreement u0is reached between Dorothy Owens Broadcasting and Pacific Gas and Electric Co. that the station would pay $3,000 a week Cor the following week’s utilities in lieu of having to place a $32,000 security ^deposit
Newspaper Details
Bakersfield Californian
Bakersfield, California, US
Thu, Dec 14, 1989
Page 2
Full Page
Clipped by
Sammi B.
NA 15 Apr 2024
Other Publications Near Bakersfield, California
The Berkshire County Eagle
Southern Californian and Kern Weekly Courier
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Kern County Californian
Daily Californian
