Judge Puts Access.1 Into Receivership
April 21, 2010 at 5:06 AM (PT)
NEW YORK State Supreme Court Judge SHIRLEY WERNER KORNRIECH holds the future of ACCESS.1 COMMUNICATIONS in her hands, and rules that GUGGENHEIM CORPORATE FUNDING can proceed with its plan to name OCEAN RIDGE CAPITAL's BRADLEY SCHER as "receiver over the FCC licenses as designated in the loan agreement," for the troubled company that owns Talk WWRL-A/NEW YORK, in addition to smaller stations in other states, as well as syndicator SUPERADIO NETWORKS.
The company raised cash when they spun off stations in ATLANTIC CITY to ATLANTIC BROADCASTING in AUGUST 2008. Talk WOND-A, Classic Rock WMGM (THE SHARK), Rock WJSE (THE ACE), Oldies WTKU (KOOL 98.3) and Spanish WTAA-A/ATLANTIC CITY were sold by ACCESS.1 for $9.5 million (NET NEWS 10/15/2008).
KORNRIECH, who is the same judge overseeing the SBS/ARBITRON battle, ruled for ACCESS.1's creditors, giving GUGGENHEIM CORPORATE FUNDING the option of an eventual sale of the company. GUGGENHEIM loaned ACCESS.1 a reported $53 million in 2004, and reported a default on that loan the following year. The loan was reworked with a much higher interest rate -- which largely caused a second default in 2008.