The Debt was created by it's NY radio station WBAI's rental problems.This is not recent but a longer occurring financial problem that had not been paid nor resolved earlier.
This loan was created to keep the Pacifica organization out of a less preferred ' Chapter 11 bankruptcy filing', for now.
So another plan of action to prevent the collapse of Pacifica and it's many radio stations across the this nation was to instead create Loans to help WBAI - and all the stations who are then also indebted, too.
The resulting loan, for now, is a short-term "bridge" loan.
That is intended to pay off the ESRT judgment immediately and then transition the seriously indebted organization into a 3-year line
of credit that will then follow.
A resulting 3 to 3-1/2 year-timeline will thus allow Pacifica to possibly explore
several more or other options - to pay off some of it's large & long-term debts.
The [PNB] Pacifica Nat'l Board and the management then assumes they might get clear of the ESRT final judgment awarded.
[and while some people prefer to claim that it was like an
" extortion " - that was the term used defensively, perhaps - because tho all of the court-awarded results & actions were apparently legal, and so binding & had to be paid - and had been due for prior years, the lease contract was entered into by WBAI and/or Pacifica management and boards, in prior years.]
So then the recently decision judicially made about that lawsuit judgment - that was just recently completed, Pacifica and all the people who have some authority to act in it's behalf were required to find some quick financial solutions.
Thus, this LOAN THAT ENCUMBERS more than WBAI, but alsoKPFK or KPFA , stations that own properties, also may involve and indebted other stations too, who may have to pay some monies for this catastrophic legal debt.
The debt is assumed to have been created by those who apparently were not professionally astute enough nor adept at making proper, practical financial decisions or contracts - when signing that lease at WBAI.
Blame is being thrown to many who occupied positions of some authority, at both WBAI and Pacifica.
Tho no one has come forth with any apologies, nor with any acceptance of responsibility for signing those WBAI rent leases. Nor have there been any open, transparent or trustworthy explanations of "what really happened?" given by those many involved in Pacifica -of those who may be from - then or now - 'in the know'.
The actual people or sources who signed, agreed to, and held quiet to the dangers within that huge UN-payable debt have not been [yet] publicly revealed. Nor investigated ? Or questioned ? Who is to know ?
The Donors / stakeholders of KPFK - and all the other Pacifica Stations - have contributed hard-earned money, savings, gifts of financial worth - but intending that for the maintenance and improvement of their radio stations.
But none of those donations were surely given for these :
legal debts, fees, attorneys, legal fees, plus past rents due.... and yet ....all that has and is being spent - to extricate the main organization from this judgment - the one that has occurred around WBAI's rent in a NY high-priced building.
The Empire State deal resulted in that real estate trust taking in much revenue without Pacifica then
having to engage in some fire sales, or reductions in what is owed now. For a while, anyhow.
This loan may help Pacifica -in retaining some semblance of the organization's
independence or sense of being temporarily steady, not collapsing.... until or if some difficulties later do emerge - maybe, when & about later renewing the loan or if having some difficulties in repaying the loan just created.
Some hope. Others may despair and worry. Who is to know ?
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Plse NOTE:
Much of the above information is explained more fully at Pacificainexile.org . Look there, to see many other articles about what occurs at the National Level at Pacifica, which covers KPFK and it's 4 other major city radio stations, that are under it's network.
Perhaps, specific numbers, debts or financial conditions of each radio station may or not be available at that more informative website. It is the only other available source of updated information about the whole Pacifica...which then affects our KPFK every time, too.
(c) mj 2018
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