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Court clears way for sale of KSKN-TV

September 20, 1985

By Kim Crompton
The Spokesman-Review

Sale of financially troubled KSKN-TV was expected to be wrapped up today after clearing legal hurdles Thursday in U.S. Bankruptcy Court.

Judge John M. Klobucher denied a motion by one of the station’s creditors asking that he reconsider his Sept. 10 approval of the sale agreement.

Gene D. Adelstein, president and chief executive officer of The Sun Continental Group, said his company expected to assume control of the station today. The transaction, involving about a $2.8 million purchase package, has been approved by the Federal Communications Commission, he said.

The Tucson, Ariz., firm owns two radio stations, KBNY-FM in Boise and KMGX-FM in Fresno, Calif. It recently sold two television stations, in Tucson and Albuquerque, N.M.

Adelstein declined to discuss plans for the independent Spokane television station.

Attorney Howard Hermann argued that Klobucher should set aside his approval of the station’s sale because of the discovery of a new refinancing source. Hermann represents a construction company that is an unsecured creditor owed about $250,000 for building KSKN’s studios.

Philip S. Brooke III, representing another creditor, agreed with Hermann. He suggested that the newly discovered party, who wasn’t identified, might be willing to refinance the station “on better terms than have been offered.”

The sale agreement does not provide for Sun Continental to take over all the station’s liabilities, Adelstein said.

Attorneys for Sun Continental and Lorimar, one of the station’s film suppliers, criticized the late introduction of the “phantom” financing source and urged that the sale go ahead.

Klobucher, citing Sun Continental’s substantial expenses, ruled it would be unjust to withdraw the previous approval without stronger justification than provided.

Broadcast Vision Television, which operated KSKN, filed in April for protection from creditors under Chapter 11 of the U.S. Bankruptcy Code. Chapter 11 prevents a company’s creditors from foreclosing while it reorganizes its financial affairs.

The station went on the air on Channel 22 in December 1983.

Friday, September 20, 1985


From → KSKN

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