The old adage is that it’s better to give than receive. In this case, apparently it’s better to forgive and receive.
The stations are KHNU-AM Hilo, KBGX-FM Keaau HI and KKOA-FM Volcano HI.
The seller is Mahalo Broadcasting LLC. George W. Kimble signed off on the application as managing member.
The buyer is Mahalo Multimedia LLC, a partnership of Pioneer Media Capital Inc., which holds 70%, and WP Media Lending LLC, which holds the other 30%. Matthew N. Clapp Jr. is principal investor in both. John Weller signed off on the application.
The value of the deal is $1,300,000, and it is all characterized as debt forgiveness. An LMA is in place until closing
According to the contract, “Mahalo is indebted to Multimedia pursuant to a First Replacement Promissory Note dated as of March 1, 2008, in the original principal amount of $972,565.77, as thereafter amended… Mahalo is further indebted to Multimedia pursuant to a Replacement Subordinated Promissory Note dated as of June 11, 2012, from Mahalo to Multimedia’s predecessor-in-interest, in the original principal amount of $663,497.00, as thereafter amended.”