FCC Approves Sale Of Dallas AMs
December 28, 2006 at 12:04 PM (PT)
The FCC has rejected the objection by investors in THE WATCH, LTD., former licensees of Spanish-Religion KFCD-A and Ethnic Indian-Pakistani KHSE-A/DALLAS, to the auctioned sale of the stations to D.B. ZWIRN's BERNARD DALLAS LLC subsidiary.
ZWIRN's SPECIAL OPPORTUNITIES FUND, L.P. financed THE WATCH's emergence from bankruptcy in 2004, then foreclosed on the stations in the SPRING of 2005. Investor/principal DAVE SCHUM was given a chance to get financing to build KHSE and halt the receiver's sale process, but did not get third-party financing arranged in time, and ZWIRN subsequently won the bidding for the stations.
SCHUM and other investors objected, claiming that ZWIRN took premature control of the KHSE construction process, that the sale is a prohibited "reversionary interest," that ZWIRN threatened SCHUM with legal action when he tried to take control over the KHSE construction, and that BERNARD did not fully disclose ZWIRN's ownership interest and that its foreign ownership levels might violate FCC rules. The Commission rejected all of the petitioners' charges and granted the sale.