By H. Nelson Goodson
June 30, 2010
Sacramento, CA - On Tuesday, Amador Bustos, the owner and founder of Bustos Media LLC relinquished ownership of the company. Bustos through a memo notified his staff and employees in 28 radio stations and all 55 station affiliates, “Today, we filed with the FCC an ownership transfer application of all radio and television stations from Bustos Media LLC to NAP Broadcast Holdings LLC.”
Most likely, the lenders will begin changing the format of the Spanish language radio network into English transmitting stations, since it hasn't been able to generate advertising dollars in the Hispanic market.
The three senior lenders, NewStart, Atalaya, and Prudential (NAP) will take over of all assets and stock. Amador Bustos, CEO and his brother John Bustos, Vice President of Operations of Bustos Media had agreed to resign from the company yesterday to complete the merger, and NAP has taken full control effective immediately.
Amador confirmed that, Jay Meyers of Broadcast Management & Technology will “serve as the interim CEO until FCC approval has been obtained."
In January, the lenders hired radio executive Meyers to work with Amador on restructuring and fine-tuning operations at Bustos Media.
In Wisconsin, Bustos Media owns two Spanish language stations LaGranD WDDW 104.7 FM radio and Television Station LP-WBWT 38 Azteca America in West Allis. Bustos Media also has radio stations in California, Colorado, Idaho, Oregon Utah, and Washington.
Amador had a 10% equity in Bustos Media, and turning over ownership and control to its NAP lenders managed to avoid filing a Chapter 11. In January, Bustos admitted that the company was in default by $100 million due to the economy, lack to generate advertising dollars and the recession. Bustos Media couldn't bounce back to generate the revenue to pay the debt incurred to lenders.
Bustos will conitnue to operate his family independent business Bustos Media Holdings LLC, which still owns four AM radio stations and one FM station. The stations are, KZSJ AM -San Jose, CA; KTXV AM - Dallas, TX; KREH AM - Houston, TX; KTRP AM - Portland, OR; and KZPT FM - Vancouver, WA.
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