Allied Media Partners CEO On Failed Transaction With Rocking M Media Wichita

Allied Media Partners

ALLIED MEDIA PARTNERS CEO MATT BATY responded to statements made by MONTE MILLER to RADIO AND TELEVISION BUSINESS REPORT in connection with the company's pending transaction with ROCKING M MEDIA in WICHITA. 

Said BATY, "MR. MILLER has not been involved in the day-to-day operations and discussions between ROCKING M MEDIA and ALLIED MEDIA PARTNERS,which is is looking into its legal rights insofar as statements made by MILLER due to factual inaccuracies

"These parties entered into a Purchase and Sale Agreement several months ago. The closing was flexible and depending upon ROCKING M MEDIA satisfying all obligations to close including providing clear title to the assets. ROCKING M MEDIA repeatedly promised to close on the sale of the radio stations to ALLIED MEDIA PARTNERS. It is standard procedure in these types of transactions that seller be able to provide lien free title to the assets and to assign leases without defaults.

"At various times during the pending sale, ALLIED MEDIA PARTNERS understood that creditors of ROCKING M MEDIA were not satisfied with the business terms and thus were unwilling to release liens and claims as against the assets of ROCKING M MEDIA, which failed to produce all documents necessary to close on the transaction on any of the dates that it proposed to close the transaction and, such documentation has still not been provided. ALLIED MEDIA PARTNERS requested an extension to close after ROCKING M MEDIA once again requested a closing date and promised that all issues with creditors had been resolved and documents would be presented. The documents were never presented .

"In late AUGUST , ROCKING M MEDIA proposed a mutual extension of the closing date. ALLIED MEDIA PARTNERS agreed to such request and committed to a closing date. ROCKING M MEDIA failed to produce the promised extension even though it agreed to provide the extension within a few days. It subsequently changed the deal terms and requested ALLIED MEDIA PARTNERS agree to different terms.

"At that juncture, ALLIED MEDIA PARTNERS elected to simply move forward under the existing Purchase and Sale Agreement and Local Marketing Agreement to await the executed documents and releases required to be produced for closing and to close the transaction. When ALLIED MEDIA PARTNERS arrived at the studio on SEPTEMBER 23rd, there was a note posted on the door by the landlord of the facility stating: 'This door is locked if you have questions call the landlord.' 

ROCKING M MEDIA  never disclosed this default, but, in hopes of salvaging the transaction, it has reached out to ROCKING M MEDIA’s landlord . ALLIED MEDIA PARTNERS requested the right to communicate directly with all ROCKING M MEDIA creditors, but such request was not approved, according to BATY. 

"ALLIED MEDIA PARTNERS has been committed to this transaction from inception in spite of the difficulties associated with ROCKING M MEDIA’s debt . It has incurred substantial costs while in a holding pattern waiting for them to be in a position to close and produce closing documents. Now, with the default by ROCKING M MEDIA, the closing appears to have been taken out of both parties’ control."

« see more Net News