Equity sells 5 TV stations...well sort of

[Mr Tony]

Found this interesting...Equity sold 5 TV stations in SW Florida.....sort of..the bold part is why I say sort of

Equity Media Holdings Corporation - Equity Media Holdings Corporation Announces Sale of Five Television Stations

LITTLE ROCK, Ark., Apr 4, 2008 (PrimeNewswire via COMTEX News Network) -- Equity Media Holdings Corporation (Nasdaq:EMDA) announced today that its subsidiary, EBC Southwest Florida, Inc., has entered into an agreement to sell five Southwest Florida low power and Class A television stations (WUVF-CA, WLZE-LP, WBSP-CA, WEVU-CA and WTLE-LP) to Luken Communications, LLC for $8 million.

The Asset Purchase Agreement complies with the asset sale requirements of Equity Media's current loan. Luken Communications, LLC is owned by Henry G. Luken III, President/Chairman/CEO of Equity Media, and Thomas M. Arnost, CEO of Equity Media's station group.

Equity Media and its subsidiaries, including the Company's wholly-owned Retro Television Network (RTN), continue to do business as normal while the Company explores alternative financing.

so basically Equity sold the stations to the CEO of their company

 

[photoman76]

I sounds like Equity had to sell the stations to raise cash to meet their current loan requirements. They either couldn't find a buyer or didn't want to sell them to an outside party, so they created a new company to buy them. This should give Equity time to arrange new financing. If successful, they will probably buy the stations back. It appears that the two CEO's have some faith that Equity will survive or they wouldn't risk their own money.

 

[Anole]

heh
Probably just a paper transfer and a lot of hand-waving. -
You know: bought with $8 million worth of Equity stock or something. -