Sheridan Broadcasting Networks no longer owns a 51% stake in American Urban Radio Networks.
In a battle that played out in bankruptcy court, Access.1 now owns the portion of the company that it didn’t own before.
Sheridan Broadcasting Corporation General Counsel and Radio Division President Ron Davenport Jr. tells RBR+TVBR in an interview Sheridan is applying to emerge from Chapter 11 and the company is looking ahead.
Sheridan, a privately owned company, was founded in 1972 by the Davenport family.
Pittsburgh-based Sheridan and NBN formed American Urban Radio Networks in 1991 with Sheridan holding 51%.
National Black Network Broadcasting is a subsidiary of Access.1 Communications, which is controlled by Guggenheim Partners.
Four years ago, NBN sued Sheridan, saying the latter was invoicing NBN several weeks before Sheridan incurred expenses, a charge Sheridan denied. The parties reached a confidential settlement last May and either party could buy out the other for control of AURN.
Sheridan Broadcasting Networks made two payments and sought bankruptcy protection to get more time to make the third payment, Davenport tells us. SBN needed to raise $9.5 million.
“We did not raise that. As a result, we withdrew from the partnership,” he tells RBR+TVBR in an interview. He said the action will take SBN out of bankruptcy and the company is looking ahead.
In addition to 3 AM radio stations, Sheridan Broadcasting Corporation will continue to own and operate Sheridan Broadcasting Networks, Sheridan Production Services, and Sheridan Gospel Network.
Meanwhile, Access.1 Communications said its subsidiary NBN completed the acquisition of AURN in a settlement of its breach of fiduciary duty lawsuit against former partner SBN. SBN made “certain financial payments” in addition to turning over its majority interest to NBN to resolve the federal court litigation, the company said in a statement to RBR+TVBR. NBN and Access.1 became 100% owners of AURN as of May 1 which is coming to light now.
AURN senior executives remain in place with CEO Chesley Maddox-Dorsey; President, Program Operations & Affiliations, Jerry Lopes; and President of Network Sales, Howard Eisen.
“It’s been almost 25 years since Sid Small and Ron Davenport, Sr. had the
vision of creating AURN. The partnership by any measure has been a huge success,” said Chesley Maddox-Dorsey, CEO of Access.1 Communications and AURN. “Now that Sheridan has passed the baton to us we intend to build on those successes by expanding our capacities to serve our primary advertising and radio station constituencies. It was vitally important to us to put AURN in a position of strength so that we can grow the business and continue our important mission,” said Maddox-Dorsey.
