Equity Media files for bankruptcy

[Jon Ellis]

http://www.bloomberg.com/apps/news?pid=20601087&sid=aDVf83geoJ3c&refer=home

(as most FTA enthusiasts probably know, a few dozen of Equity's stations can be seen on Galaxy 18)

[FTA Michael]

And IIRC, Equity owns RTN itself.

A trail of news stories has a running theme that there was something fishy about the financials, but I suppose that unhappy shareholders will always complain about something like that. But today's quote sounds a bit ominous:

(In the complaint filed by private equity firm Silver Point, it) specifically alleges that Equity Media's chairman, Richard Rochon, informed Silver Point that "he would never work with Silver Point to facilitate an orderly bankruptcy of the Borrowers to sell assets." Instead, Rochon said the board members would resign and allow the stations to cease operations, or " 'go dark' and walk away from the company," according to the complaint.

Much more: http://arkansasbusiness.com/article.aspx?aID=110687.54928.122829

[Jon Ellis]

They used to own RTN but sold it to Luken Communications in June to get some cash, along with a half-dozen of the Univision/Telefutura affiliates. They have an option to re-purchase RTN which expires in a few weeks.

[FTA Michael]

You're right, Luken Communications now owns RTN. But as of April, Luken Communications was owned by Henry G. Luken III, who was president, chairman and CEO of Equity Media, and by Thomas Arnost, who was CEO of Equity’s station group.

It's hard for me to think of Luken as separate from Equity, but I suppose I should. It sure feels like they're two different pockets in the same pair of pants, but what do I know?

[LRC322]

You're right, Luken Communications now owns RTN. But as of April, Luken Communications was owned by Henry G. Luken III, who was president, chairman and CEO of Equity Media, and by Thomas Arnost, who was CEO of Equity’s station group.

It's hard for me to think of Luken as separate from Equity, but I suppose I should. It sure feels like they're two different pockets in the same pair of pants, but what do I know?


How insightful...I'd place bets that you are correct.

[FTA Michael]

Update: Creditor asks court to liquidate Equity

"In an emergency motion filed on Wednesday, Silver Point Finance LLC, a lender on one of the company's senior credit facilities, said the case was filed with 'no planning and no exit strategy' and that the company had been a victim of 'gross mismanagement.' "

More from Reuters: http://www.reuters.com/article/marketsNews/idINN1033025220081210?rpc=44

[JohnH]

The reliability of their satellite signal has always seemed "grossly mismanaged". :D

[FTA Michael]

Update: Radio/TV Business Report says the emergency Chapter 7 hearing was postponed by an ice storm in Little Rock. Meanwhile, Univision, another Equity Media creditor, filed a motion opposing the immediate switch out of Chapter 11.

Equity Media also opposed switching to Chapter 7. Full story here: http://www.rbr.com/tv-cable/11870.html

Arkansas Business Journal summary here: http://www.arkansasbusiness.com/article.aspx?aid=110891.54928.123020

[FTA Michael]

Here's a belated update from Dec. 23. My usual news sources didn't have it, but a link from Wikipedia did.

The TV Business Report says that Silver Point and Equity Media have worked out an agreement. Kim D. Kelly, a former President of cable MSO Insight Communications, was appointed as Chief Restructuring Officer to control the company and independently decide whether it's a good idea to sell off any of its stations.

Full story here: http://www.rbr.com/tv-cable/11993.html

[FTAluvr]

There is a red screen today on most of the RTN stations on G18 indicating some kind of dispute between Equity and Luken. It has been reported on another forum that the RTN feeds (east and west) are now on AMC9 at 83°W. Haven't tried that one yet myself.

[FTA Michael]

Well, crud! I can't get a whisper of a signal on AMC 9, so either it's really weak (as reported) or it's my personal problem.

The red screen seems to be on all of the stations that Equity doesn't own. For the stations it does own, it seems to be showing non-RTN programming.

Wild, unfounded speculation: My first thought was that this seems to prove that the break between Equity and Luken was much more than just holding your money in two separate pockets. Then I thought of the whole Chief Restructuring Officer setup, and the cynical side of me began wondering whether this was a ploy to make sure the CRO keeps making payments from Equity to Luken. Or maybe my first guess is closer to the truth. Considering how little I know of the situation, I expect that I'm wasting my time even thinking about it.

[Jon Ellis]

Luken's deal to buy RTN included an option that Luken could set up its own master control and distribution system and move RTN there. Maybe that's what's happened.

Looks like the change caught at least one affiliate by surprise:
http://www.wsav.com/sav/news/local/article/whats_wrong_with_mytv/7919/

Interesting to note that I'm seeing the red screen of death on the channels formerly occupied by WPXS and KWCE-LP, which are still owned by Equity, as far as I know.

Also interesting that programming of WUMN-CA Minneapolis apparently continue to originate at Equity's facility even though it was sold to Luken in the same deal as RTN.

[Jtaylor1]

Same thing to WJLA ABC affiliate. RTN is dead now.

Seems Equity owed Intelsat $583,931.25.

[Jon Ellis]

TV Newsday has Luken's side of this whole ordeal:

http://www.tvnewsday.com/articles/2009/01/05/daily.5/

In essence, he says they were close to turning on a new RTN distribution facility but not quite ready. He wants people to think the problem only lasted four hours, but that's only for the affiliates which managed to tune in to the new satellite immediately. Widespread reports indicate that's not the case.

It'll be interesting to see what Equity decides to do with its former RTN stations. For now they seem to be filling the hours that had been RTN programming with old public domain movies or RetroJams. Perhaps they could at least give us some old public domain episodes of the Beverly Hillbillies, Ozzie & Harriet, Make Room for Daddy, etc. like Ion did on their local digital subchannels for a year after they switched from PAX?

It'll also be interesting to see if they put any new programming out over those 'red screen of death' channels!

[jeffgbailey]

Interesting to note that I'm seeing the red screen of death on the channels formerly occupied by WPXS and KWCE-LP, which are still owned by Equity, as far as I know.

They're run by Equity but not owned by them

[Jtaylor1]

Interesting to note that I'm seeing the red screen of death on the channels formerly occupied by WPXS and KWCE-LP, which are still owned by Equity, as far as I know.

Actually they're owned by Daystar (Word of God Fellowship).


WPXS and KWCE-LP will probably start carrying Daystar programming.

[Jon Ellis]

That explains why the supposed WPXS translator in St. Louis (KUMO-LP) was showing Daystar the two times I was in STL in 2005 and 2006.

[Davenlr]

Would someone that can get it, please post the Sat/freq/pol/Sr/vpid/apid/pcr for the supposed RTN uplink on AMC9? Ive read where people with a 90cm dish are getting it. I have a 6' and can get the signal meter to pop up 10 points, but cant get a peep on the quality meter or anything from a blind scan.

Anyone that has found an uplink for an RTN affiliate, that would work too. I rather like RTN. Being in Little Rock, Equitys home, Im not holding my breath to see a RTN affiliate pop up anytime soon.

[jeffgbailey]

there is still a RTN East feed on G18

12114 V 4340....took the place of (channel named) WOI-DT2

[Jon Ellis]

I don't think that's actually RTN. I've watched it quite a bit and I haven't seen one ID or promo, just very long commercial breaks. It took the place of the red screen of death a few days after the RTN/Equity divorce, and the programming was not playing on a regular schedule at first (like shows starting at :36 past the hour). I suspect Equity is just letting some programming play out of its servers for us FTA fans...

[FTA Michael]

Equity Media in the news:

Broadcasting & Cable's Jan. 5 overview: http://www.broadcastingcable.com/article/CA6626477.html?industryid=47171

A couple of various local "Our RTN affiliate is kinda off the air" stories: http://www.wkrg.com/technology/article/retro_television_network_off_the_air/22380/ http://www.buffalonews.com/258/story/542380.html

And most importantly, what will this mean for Off Beat Cinema? ;) : http://www.bizjournals.com/buffalo/stories/2009/01/05/daily32.html

[stogie5150]

Would someone that can get it, please post the Sat/freq/pol/Sr/vpid/apid/pcr for the supposed RTN uplink on AMC9? Ive read where people with a 90cm dish are getting it. I have a 6' and can get the signal meter to pop up 10 points, but cant get a peep on the quality meter or anything from a blind scan.

Anyone that has found an uplink for an RTN affiliate, that would work too. I rather like RTN. Being in Little Rock, Equitys home, Im not holding my breath to see a RTN affiliate pop up anytime soon.


Do you have C-band, and a DVB-S2 capable receiver? If so, PM me for details. :D

[FTA Michael]

I used to work at a small-town newspaper, so I know about severely limited budgets and inexperienced help, but it rankles me when I see a small-town newspaper story that's so ... lame.

Somebody at the Great Falls MT newspaper probably noticed that some of the local listings for KLMN are TBA, then dug around and noticed that Equity owns KLMN and has that RTN problem at the moment. The headline screams that "Dispute may disrupt Fox programming", but the story says "The dispute did not affect the Fox network's primetime offerings on KLMN."

The story doesn't say much of anything, really, and the only reason I mention it here is because I saw the headline, got my heart rate up, then read a thoroughly ambiguous, unhelpful little story. Pfah!

Go read it, I dare you: http://www.greatfallstribune.com/article/20090113/NEWS01/901130301/1002/news01

[Davenlr]

Do you have C-band, and a DVB-S2 capable receiver? If so, PM me for details. :D

NO dVB-S2. Havent bought the board because the 6' dish wont bring in a strong enough signal to receive any of them. I rarely get over 65% signal on any C band stations...and have read you need at least 75% to lock a S2.

[FTA Michael]

It's not directly related to the bankruptcy mess, but I hate to start another thread for it.

There's a fair chance that we're going to lose KWBF on Feb. 1. For one thing, it's changing its call letters. Here's a press release found here: http://www.virtualpressoffice.com/publicsiteContentFileAccess/49711/49711.html/?fileContentId=49711&fileName=49711.html

IRVING, Texas & LITTLE ROCK, Ark. --(Business Wire)-- Jan 15, 2009 Nexstar Broadcasting Group, Inc. (Nasdaq: NXST) announced today that its previously announced acquisition of television station KWBF-TV in Little Rock, Arkansas from Equity Broadcasting is expected to close on January 30, 2009. In addition, Nexstar will re-launch the station with the call letters KARZ-TV on February 1, 2009.

KARZ-TV or “Z-42” will offer a wide variety of programming from MyNetworkTV shows such as the hit WWE Smackdown!, along with successful first run shows such as Who Wants to be a Millionaire?, and off-network programming including Family Guy, Law & Order: Criminal Intent and Sex and the City.

KARZ-TV will also feature the one-hour, prime time, leading local newscast programming produced by Nexstar sister station KARK-TV. This newscast will be “First in Prime” airing at 7:00 p.m. and is expected to drive growing viewership of Razorback Nation, the state’s leading coverage of University of Arkansas sports originating live from sister station KNWA-TV’s Fayetteville Studios.

Commenting on the acquisition, Nexstar Broadcasting Group President and CEO, Perry A. Sook said, “KARZ-TV represents a great opportunity to increase our level of service to Little Rock viewers and advertisers. We intend to super serve the local community, as viewers will see more local programming including local sports and expanded segments from the award winning KARK News teams. KARZ-TV’s full power digital signal will also represent an upgrade over the station’s existing signal in the market, allowing more viewers to receive great programming and sporting events in High Definition while creating a deeper platform for advertisers to reach local consumers.

“We are also excited that our acquisition of KARZ-TV extends Nexstar’s long-term strategy of identifying accretive acquisitions and prudently expanding our portfolio by operating multiple stations in concentrated geographic areas. In this regard, Little Rock will become the 19th market in which Nexstar owns, operates, programs or provides services to more than one station in its 29 markets, and KARZ-TV will represent the 51st television station which the Company owns or for which it provides sales, programming and other services.”

[FTA Michael]

NASDAQ has delisted Equity Media Holdings stock.

http://www.televisionbroadcast.com/article/73114

[FTA Michael]

Yesterday, Equity Media Holdings got a $58 million line of credit from Silver Point Finance, its primary creditor. According to a bankruptcy court filing, the loan will allow Equity to continue operations, maintaining the value of its properties.

Full story in the Arkansas Business Journal here: http://www.arkansasbusiness.com/article.aspx?aID=112046.54928.124187

[Jtaylor1]

The following Equity-owned stations now affiliate Weigel Broadcasting's This TV:

KFDF-CA 10 Fort Smith,AR
KFFS-CA 36 Fayetteville, AR
WBIF 51 Panama City, FL
WNGS 67 Springfield/Buffalo, NY

[Jon Ellis]

KKYK-DT recently jumped on the ThisTV bandwagon as well, so we get it 3 times on G18.

[fluffybear]

Sorry that THIS TV has not yet arrived here in Atlanta

[bruin95]

Sorry that THIS TV has not yet arrived here in Atlanta


It has if you have FTA. ;)

[fluffybear]

It has if you have FTA. ;)

don't think I could get the wife to agree on my installing another dish