The sale of five radio stations serving Southwest Montana has been authorized by order of the Montana Eighteenth Judicial District Court, serving Gallatin County.
As such, the receiver who held the licenses for the two AMs and three FMs is formally transferring them to a limited liability company based in Idaho.
The agreement, signed Sept. 18 but not filed with the FCC until this week, sees the former Reier Broadcasting Co. properties passing from receiver Richard J. Samson to Southwest Montana Media:
- KBOZ-AM & FM in Bozeman, Mont.
- KOBB-AM & FM in Bozeman, Mont.
- KOZB-FM in Livingston, Mont.
The transaction includes the towers for KBOZ-AM & FM and KOBB-AM & FM and is valued at $350,000.
A $17,500 deposit was transferred to escrow agent Fletcher Heald & Hildreth upon the execution of the asset purchase agreement. A second deposit of the same amount was sent to the law firm by October 15.
Combined, that is the escrow deposit. An additional $5,000 nonrefundable deposit was made, per the agreement.
At closing, $140,000 is due. To fund it all, the buyer has reached an agreement on a $175,000 Promissory Note, “less an amount equal to 50% of the FCC filing fees for the application.”
The note bears a 12-month term at 5% interest, with payment due in a lump sum in one year from the APA signing date.
The note is secured by a personal guaranty from SW Montana Managing Member Ted Austin and a security interest in KANA-AM in Anaconda, Mont., and KBOQ-FM in Lima, Mont.
The transfer marks the end of an era for Bill Reier, who in 1986 sold KBOZ-AM & FM to Larry Wilson — a transaction that helped build the foundation of Citadel Communications. In 1991, Citadel added what is now KOZB.
Citadel sold the stations to Reier Broadcasting Company in 1996.
