A major deal involving the sale of twenty radio stations from Monte Spearman’s High Plains Radio Network has collapsed. E Radio Network, which had previously agreed to acquire these stations as part of a Chapter 11 bankruptcy proceeding, will not finalize the purchase. This failure has led to the majority of the affected stations filing to go silent, impacting listeners across Arkansas and Texas.
Key Takeaways
- E Radio Network will not complete the purchase of 20 High Plains Radio Network stations.
- The deal's collapse stems from a bankruptcy proceeding linked to a tower lease dispute.
- Most of the affected stations have filed to go silent with the FCC.
- Previous attempts to sell many of these stations in 2020 and 2023 also failed.
- A new buyer is reportedly being sought to resume operations.
Deal Fails Amidst Bankruptcy Proceedings
The acquisition, valued at a combined $1.7 million, was a central part of the High Plains Radio Network’s Chapter 11 bankruptcy resolution. This bankruptcy was triggered by a tower lease dispute involving Vertical Bridge. E Radio Network had already begun operating some of the stations under a local marketing agreement.
The stations involved spanned various formats, including sports, Christian AC, country, and classic hits. Their sudden silence represents a significant disruption for local communities and radio listeners in multiple markets.
Station Breakdown
- Arkansas: KWPS-FM Caddo Valley/Hot Springs (Fox Sports 99.7), KJMT Calico Rock (Fox Sports 97.1), KCMC-FM Viola (94.3 Christian-FM), KRZP Gassville (Hot Country 92.7), KDEL-FM Arkadelphia (Hot Country 100.9), KYXK Gurdon (Hot Country 106.9), KAFN Benton (Classic Hits 690), KVRC Arkadelphia (Classic Hits 1240), KZUP Malvern/K257HA Sheridan (Classic Hits 1310/99.3).
- Texas: KDAV Lubbock (1590), KKNM Bovina (96.5), KNNK Dimmitt (100.5), KGRW Friona (94.7), KZZN Littlefield (1490), KVOP Plainview (1090), KREW Plainview (1400), KRIA Plainview (103.9), KKYN-FM Plainview (106.9), KVWC Vernon (1490), KVWC-FM Vernon (103.1).
Two Separate Agreements Collapsed
The E Radio Network had entered into two distinct agreements to acquire these stations. The first deal, valued at $1 million, included nine stations primarily in Arkansas and one in Lubbock, Texas. These stations offered a mix of sports, Christian, country, and classic hits programming.
The second agreement, priced at $700,000, covered eleven stations located across various towns in Texas. These stations broadcast a range of formats, including country and other local programming. The failure to close on both these deals has left a significant void in the regional radio landscape.
"Due to the failure of the Court Approved and FCC Approved Buyer to close on the purchase of the stations, and as the Buyer was the Local Marketing Partner the stations. HPRN (DIP) Stations must go silent until a new buyer, which is currently in process can be approved by the US Bankruptcy Court, and the FCC."
Previous Attempts to Sell Also Failed
This is not the first time a sale for many of these Arkansas stations has fallen through. In both 2020 and 2023, previous attempts by Jay Brentlinger’s Broadcast Industry Group to acquire these same stations also failed to close. This pattern highlights ongoing challenges in securing a stable future for these broadcast properties.
The repeated failures to finalize sales underscore the complexities involved in transferring ownership, especially within a bankruptcy framework. Regulatory approvals from the FCC and court endorsements are critical steps that must be met.
Understanding Chapter 11 Bankruptcy
Chapter 11 bankruptcy allows a business to reorganize its finances while continuing to operate. It provides a structured process for debt repayment and asset sales under court supervision. In this case, the sale of radio stations was intended to help resolve High Plains Radio Network's financial difficulties, specifically stemming from a tower lease dispute with Vertical Bridge.
Stations File to Go Silent
Following the collapse of the E Radio Network deal, the Federal Communications Commission (FCC) has received silent STA (Special Temporary Authority) filings for a number of the affected stations. These filings mean the stations will cease broadcasting until a new owner can be approved.
The stations filing to go silent include KAFN, KCMC-FM, KDAV, KDEL-FM, KJOK, KKNM, KLVQ, KREW, KRZP, KVRC, KVWC, KWPS-FM, KYXK, KZYP, and KZZN. This widespread shutdown affects a broad audience who rely on these stations for local news, entertainment, and sports programming.
Impact on Local Communities
- Loss of local programming: Many of these stations served specific local markets, providing tailored content.
- Reduced listener choice: The absence of these stations shrinks the options available to radio audiences.
- Economic ripple effects: Advertising revenue and local employment tied to these stations will be impacted.
Search for a New Buyer Underway
Jay Brentlinger, acting as a technical consultant for the High Plains Radio Network, confirmed that the stations must remain silent. He stated that this situation will continue "until a new buyer, which is currently in process can be approved by the US Bankruptcy Court, and the FCC."
The ongoing search for a new buyer indicates an effort to revive these broadcast operations. However, the approval process through both the bankruptcy court and the FCC can be lengthy. Listeners in Arkansas and Texas will likely face an extended period without their favorite local radio stations.
The future of these twenty radio stations remains uncertain, dependent on the successful navigation of complex legal and regulatory hurdles to find a suitable new owner. The radio landscape in these regions faces a period of significant change.