RE TODAY'S JUDGEMENT
Here's the news from court in NY - not good.
But *we will get through this*, and *please continue doing what you are
doing.*
Obviously, what happened in court is public, so you can tell everyone you wish. I don't want to scare away donors in our fund drives with the word bankruptcy, but people need to know what when/if we go into bankruptcy (more likely now), it will be *chapter 11 bankruptcy* (look it up), in order to continue operating. *It will NOT mean that we'd shut down*.
Ch. 11 brings with it additional problems but would stop collection efforts by ESRT and allow us to keep operating while we develop a plan to pay off the debts. It's possible we might get some more time from ESRT to come up with money, if they know we'll declare bankruptcy to stop collection activities, so that might finally give us a little leverage in negotiating with them for more time (a few months perhaps).
The PNB will discuss this tomorrow night, and I'll keep you updated.
But again, just keep doing what you are doing at your stations, and I hope your fund drives do great.
Bill
Ridiculous. They can only enter bankruptcy voluntarily (as a nonprofit) and if they can convince the court that they have a credible plan and path for survival.
ReplyDeleteTo ESRT it would be an empty threat and therefore meaningless as a negotiating tactic.
~ 'indigopirate'
I don't know the bankruptcy laws, but Bill's note did seem to be a shade too optimistic.
DeleteAs a lawyer, I am not surprised at this decision. In fact, I could not really figure out what BAI's defense to non-payment was. The only thing that looked like a cognizable defense was unconscionability. But that defense only applies in very rare cases, typically involving an unsophisticated party induced into a contract, the terms of which are manifestly outrageous, by a sophisticated party. In this case, there was a longstanding lease contract between 2 sophisticated entities, and under which WBAI performed for many years without complaint. It was a rubbish defense.
ReplyDeleteIt's so obvious to me that the solution to this problem and every other financial problem plaguing Pacifica is to sell WBAI. That sale would reap a windfall so great, it could not only pay off the ESB, but every other debt owed by Pacifica and every debt owed by all the other individual stations. And after paying off all debts, there would still be a huge pot of money, which could be used to create a top-notch internet radio version of WBAI, with quality programming by paid professionals. And even after that, there would still be money for Pacifica to use as a rainy day fund. Post-sale, there would be no more Manhattan rent for the station. No more ESB transmitter rent. No more need for marathons. It could be a huge opportunity to wipe the slate clean and start anew. It is so obviously the right course of action, which is why it will never happen.
Makes a lot of sense to me.
DeleteSorry, but Crosier has now proven to me that he is as out of it as the rest of the Pacificans.
ReplyDeleteAn internet radio version of WBAI would be a waste of time, as many, if not most, of WBAI's ardent supporters don't have internet access. Just sell the station and let the factions at Pacifica steal it, as they will.
SDL
The disdain evinced by "It could be a huge opportunity to wipe the slate clean and start anew. It is so obviously the right course of action, which is why it will never happen." makes it hard to take seriously.
ReplyDeleteTruth and distain are not synonymous.
DeleteWhy? Isn't the disdain richly deserved?
DeleteOn another note, why is that useless petition still popping up on the WBAI website?
ReplyDeleteChris,
ReplyDeleteI listened to WBAI during the late 60s and early 70s on a KLH radio. My favorite program, and the only one I listened to on a regular basis, was about the Vietnam War. I believe it was called The War Report.
I also remember listening to the My Lai Massacre.
I had a friend, who went to Grand Central station- and ran for his life.
Currently WBAI is a scam.
Ed Manfredonia
I modestly agree that we lived up to Lew Hill's dream with our Vietnam and Civil Rights coverage.
DeletePeople may still be running for their life, but for different reasons: someone told them to check out WBAI—and they did.
Oh, boy. Reimers is coming up with a new angle - broadcasting should be free. Why am I seeing shades of the 7 Dirty Words case here? Sure, go all the way to the Supreme Court and spend money you don't have.
ReplyDeleteSDL
Did anyone actually believe that a judge would rule that a duly signed and executed lease would be declared void due to the screams of a select group of politicians? The voices of a rabble?
ReplyDeleteWould you want to live in a country where the judiciary caves in to bellicose politicians? Would you want to live in a country where the courts cave in and administer the stopsy tur by S treet justice of the mob?
Don't answer that
There was lots of unconscionability. Yes sir.
But not in the lease. Not at all.
The programming at the stations of Pacifica is unconscionable.
The political correctness that prevents people from calling out and kicking out a station vomiting overt racism inside the station and over the airwaves is unconscionable.
Or allows the bastardization of history into a fantasia of Kemet, of the defense and reverence for cop killers, race hating and bating programming, of thuggery and physical intimidation. That's unconscionable.
Or allows, laughs and encourages vicious hatred of the very country that allows programmers to shanghai the airwaves and hate this country--when what theyd all be dead and buried long ago if they screamed their anti establishment screed in any one of the hell holes that they say is so much more noble, generous, error proof, less corrupt than the United States of America. That's unconscionable
When you ceaselessly harp on the numerator of Americas misdeeds and errors, and never the denominator of all the times the country has stepped up to the plate and swung the bat and done good unequaled not only by any country but by any country in history that's unconscionable.
When you paint a picture of USA as a country that refuses to acknowledge our flaws, refuse to learn, refuses to do anything about them, and that there has been zero progress made in our country since terrible situations that existed 50-60 years ago that's unconscionable.
When a radio network overtly traffics in ways to pit groups against one another, reduce every internal conflict to black versus white, man hating woman--in direct contravention of its noble mission statement, that's unconscionable
when a radio network makes street theater out of promoting, scripting, pouring gasoline on, labeling others as haters while those who pour are good and pure that's unconscionable
When a network promotes every kind of racial and gender conflict it can get its ham handed fists on and lustily pits groups of people against each other in direct violation of their mission statement, that's unconscionable.
When a radio station will not allow more than one voice over it's airwaves, against the backdrop of a mission statement they know calls for the exact opposite, that's unconscionable.
When a group of people are handed the most precious radio network in the country and allow it to be driven into the gutter without uttering a peep that's unconscionable
When a group of loud mouths can take over governance meetings, reduce them to theater of the absurd and aren't voted off the boards by sane people trying to make a way out of no way that's unconscionable
When the financial writing is on the wall and listeners are leaving in droves and harmful remedies are being sold to gullible listeners to try to keep the whole thing going that's unconscionable.
When a group of people who are supposed to be running the organization instead turn the meetings into a laboratory of racial hatred and obstruction between two factions--factions where there's not a dime's worth of difference between them, daughter that's unconscionable.
And when because of all of this there's not enough money to pay the rent, and the same group of thugs and miscreants want to sock it to the landlord, call them every name in a clear attack of jealousy (Pacifica would do a circle jerk on Mother Teresa's grave to have that kind of scratch in their till) and make THEM pay for YOUR mismanagement of this radio network, that's unconscionable.
Well said.
DeleteIt's unconscionable to bring back Tony Bates, who had a huge petition signed by most station staff to get rid of him for sexual harassment.
DeleteSDL
But Bates is such a good liar and, at WBAI, that's a keeper.
DeleteContinued:
ReplyDeleteWBAI got exactly what it deserved. Lew Hill was your judge today. And to the degree the Judgement represents an existential threat to the entire network then so be it. Pacifica is arguably, in its current incarnation, more hurtful to the national dialogue than helpful.
Prepare for the whirlwind
I'll simply second Chris – well said.
Delete~ 'indigo'
If Reimers has been committing fraud all this time (and proof can be given to the judge), why would they or any judge appprove bankruptcy? BAI owes ESB $2 million and Pacifica owes DN $2 million. I can't believe that no prosecutor wouldn't finally go after everyone involved (Reimers and all accomplices). The NY Bar Assoc. wouldn't go after a judge who deliberately ignores a criminal case? You can get disbarred for that.
ReplyDeleteIt is my layman’s understanding, subject to correction, that if they, as a nonprofit, file for either Ch 7 or Ch 11 they will have to deal, first, in the event of a Ch 11, with providing the court with a credible plan for returning to a solid and sustainable financial state, and in such presentation to the court they may not include hoped-for increased donations and the like, and in the event of either Ch 7 or Ch 11, they will have to deal with the reality of a court-appointed trustee or trustees investigating their affairs, quite possibly in some depth, and then allocating resources for the benefit of their creditors.
ReplyDeleteI would think they would not find these to be pleasant prospects.
Also, it’s my impression that they no longer have directors and officers liability insurance, though here, too, I’m open to correction.
In any case, such insurance would not provide protection for any illegal actions.
~ ‘indigopirate’
How about Pacifica moves the WBAI main programming to one of the SCA channels, and lease the standard FM space?
ReplyDeleteThe income stream would likely pay the bills and have enough cash to buy all of the remnants a dedicated SCA receiver if they want to listen over the air?
BTW, Metrosonix in NJ makes a wide assortment of SCA receivers http://www.metrosonix.com/
WBAI (or Pacifica) probably has a contract with the service now on SCA, but not a bad idea overall, when the contract runs out. Fidelity isn't as good, but they don't need it, anyway.
DeleteWhat I wonder is if the religious services on WBAI's sidebands have as many listeners as WBAI proper.
SDL