Grasonville/Empire LMA Terminated
February 17, 2009 at 1:05 PM (PT)
GRASONVILLE BROADCASTING, affiliated with NASSAU HOLDINGS, has terminated its LMA with EMPIRE BROADCASTING SYSTEM and says that it has returned operations of AAA WRNR/GRASONVILLE, MD to its previous operators. GRASONVILLE, in a press release, said that it continues to maintain its lawsuit to recover all monies previously paid to EMPIRE, as well as other compensatory and punitive damages.
For its part, EMPIRE denies NASSAU/GRASONVILLE's allegations and issued its own statement saying, "In AUGUST of 2008, after (GRASONVILLE failed) to make LMA payments in a timely manner.... EBS was forced to re-enter the station. In addition, GRASONVILLE was taken to court for nonpayment of LMA fees. The court at that time issued an order compelling GRASONVILLE to adhere to the terms and conditions of said contracts. EBS agreed to allow GRASONVILLE access to WRNR as a result of payment. Since the ruling, GRASONVILLE has defied the court's order by again refusing to pay the LMA fees for the months of JANUARY and FEBRUARY, 2009. EBS has made a resonable attempt to negotiate with GRASONVILLE in an effort of finding an amicable solution, and avoid costly litigation. Through negotiations, our goal was to reach a manageable price for NASSAU. After a failed attempt, EBS notified the court of NASSAU's most recent default and took over operations of WRNR FM at 9:00 AM MONDAY, FEBRUARY 16, 2009.
"EBS flatly denies any material misrepresentations regarding expenses and revenues and wonders if their cause isn't more a matter of the today's economic environment and their inability to secure financing to comply with the terms and conditions of the LMA and APA. EBS will vigorously defend our position against their allegations. EBS operated WRNR FM for ten years prior to its LMA with GRASONVILLE and is committed to maintaining the legacy that is 103.1 - RNR."