Kgmc to Operate under Agreement

Article excerpt

KGMC-TV Channel 34 will continue to operate under a two-week cash collateral agreement with its secured creditor, NCNB Texas National Bank, Judge John TeSelle ruled Friday.

Kwame Mumina, attorney for Oklahoma City Broadcasting Co., owners of the station, said this is a "stop gap" measure to keep the station operating until a long-term arrangement is made with Texas National.

Before filing for Chapter 11 reorganization bankruptcy, Oklahoma City Broadcasting incurred a $3.9 million debt to NCNB, the court order said.

To protect the use of its collateral, which is not to exceed $50,000, Texas National will receive a lien and security interest in all of Oklahoma City Broadcasting's accounts receivable and substantially all of its assets, the document said.

The broadcasting company also agreed to maintain a minimum of $100,000 in cash on hand and accounts receivable. If the amount of cash drops below $100,000, Texas National may terminate the post-petition financing arrangement with the broadcasting company, the order said.

The court order retroactively took effect on Feb. 9 when Oklahoma City Broadcasting filed its Chapter 11 petition.

Also on Friday, Busse Broadcasting Co., owner of KOKH-TV Channel 25, confirmed that the agreement to sell KOKH to Pappas Telecasting of Oklahoma had been cancelled. …