Receivership: Local stations seek buyer
By Scott Nicholson
nicholson@mountaintimes.com

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Aisling Broadcasting LLC, parent company of a group of six local radio stations including WECR and WATA, is undergoing receivership proceedings.

Superior Court Judge James L. Baker appointed George Reed, managing director of Media Services Group, receiver for Aisling Broadcasting two weeks ago and radio station staff members were notified last week.

Reed, who is responsible for finding a new owner and making a recommendation to the court, said there should be no change in the day-to-day operations of the stations.
Reed will oversee the stations while Media Services Group looks for a buyer.

Jonathan Hoffman was the main shareholder of Aisling Broadcasting, and Tom Lanier will continue to serve as the stations' general manager, according to Reed and Hoffman.

Reed's company is a broker that matches media groups with potential buyers and his duty is to market the properties and find a suitable buyer, which he will then recommend to the court, which makes the final order. Reed said it was difficult to predict how long the transactions will take.

"It's like selling any other business," he said. "The sale will have to be approved by the court. It will also require FCC (Federal Communications Commission) approval, and that usually takes three to four months."

Hoffman said the financial lender that helped Aisling buy the stations in 2004 had forced the property into court, admitting he and the Aisling group had overpaid when they purchased the stations for nearly $6 million.

He is optimistic the stations will be successful and said the company had made gains last year but ultimately couldn't generate enough money to satisfy the lender.

"There's sort of an irony in that we turned the corner in the last year, which is why there are going to be no changes," said Hoffman, who is no longer involved in the stations' operations. "I'm very proud of what the stations have done. I get a lot of feedback. The stations work for advertisers."

Hoffman said the local news coverage, live broadcasts and community connections had kept the stations popular. The flagship station, WATA, was founded in 1950 and was privately owned by Roland Potter for nearly 40 years.

The group includes News/Talk (1450) WATA/Boone, Southern Gospel (1130) WECR/Newland, AC (Mix 102.3) WECR-FM/Beech Mountain, Country (Highway 106.1) WMMY/Jefferson, Talk (1200) WXIT/Blowing Rock, and Classic Rock (100.7 Mac FM) WZJS/Banner Elk.

The group of stations was accumulated, swapped around and combined over the last decade after a long period of relative stability. Highland Communication Associates purchased WATA from the Roland Potter family in the late 1980s, and shortly afterward Highland launched WZJS as an FM "sister station."

In 1996 Rondinaro Broadcasting Inc., headed by Steve Rondinaro, purchased WJTP and it became WECR AM. Rondinaro Broadcasting started WECR FM later in the year and eventually added WXIT as a news talk station.

Rondinaro Broadcasting sold the stations to Aisling and then purchased MTN, a local television station that is now up for sale. Aisling closed deals to buy the two Highland Communications stations at around the same time.

Reed said it would be "business as usual" for the Aisling stations during the receivership proceedings. "The stations will be sold and there will be no change for the audience," Reed said.