The partners in Coltrace Communications owned and operated an FM duopoly in an unrated portion of Michigan near dead-center of the Lower Peninsula mitt. After an apparent operational disagreement, there will be only one principal going forward.
The stations are Classic Hit WUPS-FM Harrison MI and Country WTWS-FM Houghton Lake.
No money is changing hands, but ownership of Coltrace is. John Salov’s 51% stake is going to Sindy Fuller, who will move from 49% to 100% ownership.
According to a document attached to the FCC transfer application:
“John Salov has taken out loans in the company’s name where the company has been liable for repayment of those moneys.” It then says that Salov “…has without authority bound or attempted to bind the company to contracts and other liabilities which the company paid or settled to the detriment of the company.”
Many owed by the company to Salov is said to be offset by the “wrongful liabilities incurred” by Salov.
The remedy is that Fuller will assume all liabilities and Salov will exit, released from any liabilities; meanwhile, Salov will not be entitled to repayment for any amount he personally loaned to the company.
The agreement, just filed with the FCC, was signed 10/10/12.
WUPS is a Class C1 on 98.5 MHz with 1 kW @ 981’; WTWS is a Class A on 92.1 MHz with 920 W @ 748’.