Repo deal in Hilo

By on Nov, 25 2014 with Comments 0

DebtA trio of station on the Big Island of Hawaii are going from one Mahalo to another in a cash free deal that could inspire a reworking of an old adage.

The old adage is that it’s better to give than receive. In this case, apparently it’s better to forgive and receive.

The stations are KHNU-AM Hilo, KBGX-FM Keaau HI and KKOA-FM Volcano HI.

The seller is Mahalo Broadcasting LLC. George W. Kimble signed off on the application as managing member.

The buyer is Mahalo Multimedia LLC, a partnership of Pioneer Media Capital Inc., which holds 70%, and WP Media Lending LLC, which holds the other 30%. Matthew N. Clapp Jr. is principal investor in both. John Weller signed off on the application.

The value of the deal is $1,300,000, and it is all characterized as debt forgiveness. An LMA is in place until closing

According to the contract, “Mahalo is indebted to Multimedia pursuant to a First Replacement Promissory Note dated as of March 1, 2008, in the original principal amount of $972,565.77, as thereafter amended… Mahalo is further indebted to Multimedia pursuant to a Replacement Subordinated Promissory Note dated as of June 11, 2012, from Mahalo to Multimedia’s predecessor-in-interest, in the original principal amount of $663,497.00, as thereafter amended.”

About The Author: RBR+TVBR has been reporting on the business of broadcasting for nearly three decades. Beholden to no one, it is independently owned.

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