I am still not convinced that Nassau is completely out of the question.
Hopefully, the numbers will convince you.
Back in 2009, Nassau was in deep financial trouble and agreed with its creditors to swap debt for an 85% equity stake in the company with Louis Mercatanti and other senior managers holding the other 15%.
Then last June 31, Nassau Broadcasting was reported to be $258-million in debt, and Nassau offered to buy itself back from its lenders for $52-million.
Apparently, its lenders wrote down a lot of that huge debt, but in September they filed involuntary Chapter-7 liquidation claiming debts of $84-million. Nassau convinced the court to allow the bankruptcy proceedings to follow Chapter-11 reorganization procedures so the stations could stay on the air. But, the company asked that all its stations be put on the auction block as they would be in a Chapter-7 liquidation.
In normal Chapter-11, companies owe less than their assets are worth, but can't meet scheduled debt payments. They sell some assets and pay debt. In this case, the company owes far more than everything could be sold for. So, when things are sold all the money goes to the creditors, and nothing is left for the company.
Outside of Goldman Sachs credit purchases at last week's auctions, about $10-million in cash was raised from the sale of other stations.
That means Nassau has $74-million to go, before it gets to keep a dime for itself. It ain't gonna happen, even if the remaining stations could be sold. The fat lady has sung. That part is over, Nassau will be no more.
Louis Mercatanti was the principal owner of Nassau, and his entire investment in it is worthless, but he did not personally go bankrupt and may have his own personal resources that would allow him stay in the business, but WPST and WODE are going to ultimately wind up owned by big organizations with deep pockets like Townsquare or Cumulus.
Donald Trump's "Trump Plaza Hotel and Casino" did go through Chapter-11 a couple of times, but it was organized alone. The Donald's other properties were not part of the bankruptcy, not even his other Atlantic City casinos.
The equivalent would be one Nassau station reorganizing its debt, and the all the other stations doing fine. It's really not the same thing at all.
No doubt, Goldman Sachs will be more than willing to sell the remaining stations at what it considers a "fair price." How long that will take is anybody's guess. But, $11-million for WODE, and $22-million for WPST are really big numbers in today's market, so it may take a while.