The acquisition of a Class C AM radio station in Roanoke Rapids, Va., from Jimmy Johnson’s Johnson Broadcast Ventures, has been scrapped. What happened? The intended buyer is in default on a promissory note, and in lieu of a foreclosure auction, the transaction has been cancelled.
In a Form 314 filing with the FCC made on Sept. 13, Bell Media Broadcasting revealed that it is under default under an April 1, 2017 promissory note linked to its intended acquisition of WCBT-AM 1230 in Roanoke Rapids, Va.
Owner Jimmie Bell made a nonrefundable $5,000 deposit to Johnson’s escrow agent, Putbrese Hunsaker & Trent, P.C., and was then responsible for a $15,000 cash payment at closing.
Bell agreed to obtain a $130,000 promissory note in order to finance the deal. The note carried a five-year term, with an annual interest rate of 6%; monthly payments were $1,500. At the end of year five, the note must be paid off in full at a value of $71,048.95.
Less than two years into the deal, Bell is unable to make the monthly payments.
While the promissory note was guaranteed with a stock pledge on the part of the buyer, Johnson and Bell ultimately agreed that it was in their best interests to negate the deal and return WCBT to Johnson.
Johnson’s other radio properties are Class D daytimer WCPS-AM 760 in Tarboro, N.C., and its associated translator, W274AZ.
