A federal bankruptcy judge has approved plans for a public auction of St. Louis-licensed noncommercial KDHX-FM’s broadcast license, a move that escalates the legal and financial battle over the future of the embattled listener-supported station as the original bidder seeks compensation for its early involvement.
The auction, scheduled for May 30 via Zoom, follows months of turmoil stemming from the station’s March bankruptcy filing and long-simmering internal conflicts between KDHX leadership and its volunteer base.
KDHX licensee Double Helix Corporation filed for Chapter 11 with an estimated $2 million in debt. Soon after, omnipresent Christian Contemporary Music non-comm giant Educational Media Foundation submitted a $4.35 million offer to acquire the station and add it to its national K-LOVE network, while also offering financial support to keep operations afloat during the bankruptcy process. The offer includes tiered pricing: $4.85 million if completed within six months, or $4.6 million if finalized within one year.
Weeks later, St. Louis-based Christian radio group Gateway Creative Broadcasting Inc. submitted a competing $5.5 million offer for the license and assets, prompting federal Bankruptcy Judge Kathy A. Surratt-States to temporarily pause the sale in April.
The auction plan has drawn strong opposition from local KDHX supporters, including the advocacy group LOVE of KDHX, made up of musicians, business leaders, and former volunteers. The group pledged to raise funds and present an alternative plan to preserve the station’s community radio model. However, on Tuesday, Double Helix attorney Robert Eggmann told the court no such proposal had been submitted.
Now, additional financial hurdles have been added for any buyer other than EMF.
Under the court-approved bidding procedures, a successful buyer must pay up to $300,000 to reimburse EMF for expenses incurred as the “stalking horse” bidder, along with a $152,000 break-up fee. Both Gateway Creative Broadcasting and LOVE of KDHX objected to the added costs.
In a statement, LOVE of KDHX emphasized that the judge’s decision approved only the auction procedures, not any sale, and reaffirmed their commitment to submitting a fully funded plan to retire KDHX’s debt and preserve its nonprofit, volunteer-run identity.
The court will hear arguments on June 9 regarding whether to approve an expedited sale of KDHX’s core assets, including its FCC license and broadcast tower.
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