To the uninitiated, the fight over the future of KDHX (88.1 FM) might look like a provincial spat between the hyper-dedicated fans of the radio station’s eclectic musical legacy, and a management team trying to unload a money-losing concern in bankruptcy court. It has become a remarkably personal feud, with angry claims of bad faith from both sides.
It’s tempting to steer clear of the whole fractious mess, but for two things: One, for all the financial struggles and controversy surrounding the nonprofit station lately, the hyper-dedicated fans are right about its unique cultural history and value to 51ºÚÁÏ; and, two, their allegations of underhanded management tactics aimed at unloading the station are serious enough to at least merit a long look by the court system before approving a pending bankruptcy sale.
Given those factors, we hope the judge in that bankruptcy case will grant the request of a coalition of supporters of the station to put off the pending sale for 90 days while they try to cobble together a plan that would pay off creditors while preserving KDHX in its current (well, recent) form.
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The station paused live programming early this year, the culmination of a protracted battle between its all-volunteer DJ staff and its management. The complicated conflict started with DJs being fired or quitting in solidarity after run-ins over what they alleged in a letter last year were “poor management decisions†that undermined the public mission of the station and cratered its fundraising.
KDHX’s parent company filed for Chapter 11 bankruptcy in March. The local Christian-music station 99.1 Joy FM won an auction a week ago Friday to obtain KDHX’s license and related assets for $8.75 million — this against KDHX debts of roughly $2 million. Bankruptcy court Judge Kathy Suratt-States has set a hearing for Monday to formally approve the sale.
But that may not be the end of the KDHX saga. As the Post-Dispatch’s Daniel Neman reports, a coalition of KDHX supporters filed a motion on Wednesday asking the judge to postpone approval of the sale for 90 days so they can offer their own restructuring plan. They claim to have already raised more than a half-million dollars.
Among the claims the supporters make in their filing last week is that the KDHX board of directors purposefully failed to inform one board member of her election to the board until after it had voted to declare bankruptcy and sell the station; that it terminated contracts with more than 100 station volunteers with voting rights in order to prevent their participation in those votes; and that the board ignored a judge’s temporary restraining order that had required reinstatement of 15 of those volunteers.
We take no position as to the veracity of these allegations, except to note that they are specific and serious claims. Surely a bankruptcy court could — and should want to — get to the bottom of all this before giving final sale approval.
The supporters’ filing notes that the board is seeking expedited sale of the station and argues that “nothing justifies the rush.†Indeed, the bankruptcy was only filed in March, which would make a final sale this week a remarkably quick turnaround; it’s not usual for business bankruptcy cases to take years.
“[T]here is no need to hurry the sale of a rare, arguably priceless asset (the KDHX license) for almost $9 million, to satisfy under $2 million in creditor claims,†states the filing, “especially under these circumstances and considering Debtor’s [alleged] misconduct.†Given the unique cultural value of this station, it’s an argument we hope the court will strongly consider.