Simmons Changes Board, Details SLC Spin-Off Trusts
June 21, 2010 at 4:51 AM (PT)
SIMMONS MEDIA GROUP is restructuring to change the makeup of its board, according to paperwork filed with the FCC. The present structure has three of the board's five members chosen by the SIMMONS family trusts, and two by partner GOLDMAN SACHS.
The restructuring will give the company's partner/lenders a majority of the board's seats, with GOLDMAN SACHS appointing two directors, one appointed by existing SIMMONS MEDIA GROUP members, and two named by various parties to the Restructuring Agreement as "Independent Managers." The new board will consist of DAVID SIMMONS (for SMG) DAVID HOROWITZ and GREGORY KUNZ (for GOLDMAN SACHS), and CHRIS MCMURRAY and DENNIS DAVIS (as Independent Managers).
SIMMONS has also outlined the trusts being formed to spin off stations in the SALT LAKE CITY market as part of the acquisition of MILLCREEK BROADCASTING/3 POINT MEDIA's three stations in the market. SIMMONS is spinning Country KDWY (THE DIAMOND)/DIAMONDVILLE, WY, Adult Hits KJQN (103.1 JACK FM)/COALVILLE, UT (plus six boosters), and Sports KZNS-A (1280 THE ZONE)/SALT LAKE CITY into "SLC DIVESTITURE TRUST I" with LARRY PATRICK as trustee, and MILLCREEK will send Rock KAUU (THE BLAZE)/MANTI, UT and Modern AC KUDE (THE MIX)/SALT LAKE CITY and 3 POINT will send Rock KZZQ (THE BLAZE)/COALVILLE, UT into the trust as well. A second trust with JIM BURGOYNE as trustee will spin off SIMMONS' Country KEGH (THE EAGLE)/BRIGHAM CITY, UT and 3 POINT's Soft AC KMGR (CLASSY 96)/DELTA, UT and K274AV/RURAL JUAB COUNTY, UT for sale. Top 40/Rhythmic KUUU (U92), Hot AC KUDD (MIX 107.9) (plus three boosters), Triple A KYLZ (104.7 THE POINT) (plus three boosters)/SALT LAKE CITY, and K283AO/SMITHFIELD, UT are being acquired by SIMMONS in a complicated deal that forbears loans and debts owed by MILLCREEK and 3 POINT MEDIA.
In other FCC filings, RICHARD S. COMRAS is selling the construction permit for KGZZ/SUSANVILLE, CA to SIERRA RADIO, INC. for $39,000. The seller will owe an "unjust enrichment payment" to the FCC for selling the permit before five years have elapsed from the permit's grant.
CLEAR CHANNEL is taking Hot AC WHCY (MAX 106.3)/BLAIRSTOWN, NJ back from the ALOHA STATION TRUST. The addition of new YOUNGSHINE MEDIA noncommercial Spanish Religion WDNJ/HOPATCONG, NJ to the SUSSEX market has increased the number of stations CLEAR CHANNEL can own in the metro from two to three. Oldies WTOC-A/NEWTON, NJ remains in the trust for spinoff.
MOTHER LODE BROADCASTING has applied to move new AM KVGC-A/JACKSON, CA to a new site and reduce to 440 watts om 1340 AM due to loss of the original site when the Native American tribe controlling the land changed leadership and the new leaders decided not to permit the radio construction on tribal land.
PAULINO BERNAL EVANGELISM has applied for a Silent STA to take noncommercial KZPI/DEMING, NM off the air due to the loss of the station's lease.
And HAWAII PUBLIC RADIO, INC. has taken booster KKUA-FM-1/HANA, MAUI, HI off the air because of interference and unreliability problems. The company expects to fix the problem and return the booster to the air by mid-JULY.