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Emergency KGNU Board meet
 
AN EMERGENCY MEETING OF THE KGNU BOARD
December 19th 6PM in the GNU room of the KGNU Studios, 4700 Walnut St, Boulder.

The sole agenda item is to consider refinancing a $500,000 debt currently held by the seller of 1390 AM.

Refinancing the debt with a Commercial Lending institution would require using KGNU?s studios as collateral. If the debt is refinanced before January 1, 2006, KGNU would realize an immediate $76,000 windfall because a term in the promissory note would have all interest that has accrued on the original $3.1M debt forgiven if the debt is fully retired before 2006.

The board unanimously agreed that it has made a commitment to the KGNU community at-large not to jeopardize any current assets to support the 1390 AM Denver expansion. However the board generally agrees that from a purely financial point of view, due to the KGNU's strong position on its balance sheet, the risk of foreclosure is small. The AM Signal has been appraised at the $4.1 M selling price; at the end of September KGNU paid off $2.5 million of its remaining $3 million debt on 1390 with no-interest loans from supporters.

During the past few months, we have been seeking no or low-interest loans from other supporters in order to pay off the final $500K; at this point we have one offer of $100K.

The board is, of course, eager to hear from others who could make a loan of $100K or more to KGNU before the end of the year ? thus eliminating the need to go to a commercial lending institution, or at least reducing the amount we would have to borrow from a bank. Please contact Station Manager Marty Durlin if you are interested in helping KGNU in this way.

If we are unable to make the payment by January 1, the current debt of $500K with the seller of 1390 AM must be paid off, with the $76K interest already accrued and other interest at 5.9 percent, by October 1, 2007.

The board feels it has a fiduciary duty to make responsible financial decisions on the part of KGNU, however financial considerations are not the sole criterion, nor even the most important criterion for the actions of the board. The goodwill and feeling of trust between the board, staff, volunteers and community of listeners is recognized as a priceless asset. Therefore the board desires feedback from the larger KGNU community. Do members of the KGNU community feel the board would violate a trust if this $500,000 debt were refinanced with the building used as collateral? Or is it the fiduciary responsibility of the board to take an action that would result in an immediate $76,000 windfall?

Due to the high value the board places on the trust and goodwill of the KGNU community, the board has made a commitment to personally respond to each and every person who brings their concerns to the attention of the board. With the short time frame, the best way to contact the board is to email the board at board@kgnu.org. Conventional mail addressed to 4700 Walnut St, Boulder CO 80301 or notes dropped of to the station will also be addressed. Please include contact information so we can get back to you to discuss your concerns.

As with all meetings of the board, the Emergency meeting of the board scheduled for Monday December 19 is open to the public.
 
KGNU Studios in Boulder, Mon at 06:00 PM
 

 

Created:12/19/05, Modified:12/19/05, expires:12/19/05, priority:9