Arthur Liu’s Multicultural Television Broadcasting has suffered defaults involving two sets of lien holders and is headed into a trust under the care and feeding of Lee W. Shubert for the purposes of selling off assets and paying off creditors. Stations inlude KCNS-TV San Francisco, WMFP-TV Boston (Lawrence MA), WOAC-TV Cleveland (Canton OH) and WRAY-TV Raleigh-Durham (Wilson NC). Shubert is getting the stations under licensee name Multicultural Capital Trust, and according to the contract filed with the FCC has contracted with brokerage firm Kalil & Co. to sell the stations. The first lien is attributed to Wells Fargo Foothill, and the second to Pacific Media Capital. MTB will receive proceeds from sales only after those two have been satisfied.
Multicultural owns a significant platform of radio stations in many large markets, most using the brokered ethnic block leasing format. The radio stations were not mentioned in any of the documents in the current filing.
RBR/TVBR observation: These stations were sold to Multicultural along with WSAH-TV Bridgeport CT (near New York City) back in 2006 for $170M by E.W. Scripps. Think they’ll get that much back?