A low power television station was sold out by Pappas Telecasting to Uniglobe Central America on terms memorialized in a contract dated 1/21/10. Now, the Houston TX Class A is going to a new buyer in a deal just filed at the FCC.
The station is KUGB-CD. At the time of its earlier sale, it was known as KHMV. It operates on Channel 28.
The current transaction is a stock deal. The licensee name will remain Uniglobe Central America Network Licensee Inc., but with a new set of stockholders. Jose Trinidad is selling a 90% stake and Sandy Trinidad a 10% stake. Taking 25% apiece will be Thomas Abraham, Sarah T. Abraham, Bryan T. Abraham and Lauren A. Abraham.
In addition to the change in calls, there are two other key differences in the station since Uniglobe bought it. First, it has returned to the air after being temporarily silenced, and second, it has flash-cut to digital service.
That may explain how Pappas is taking a bit of a haircut despite the a modest increase in the station’s sale price.
The Trinidads bought it for $750K, $550K of which was in the form of a promissory note to the benefit of Pappas. Pappas was responsible for the legal and engineering legwork on taking the station digital, and the Trinidads were responsible for the equipment.
In the new deal, the Abrahams will pay $850K. $450K of that will be to acquire the note from Pappas. It constitutes a haircut for Pappas since the outstanding principal balance on the note at the time the new contract was signed was precisely $524,894.39. The Trinidads will receive $400K.
Editor’s note: Story updated for correction on status of Pappas Telecasting.