[grc] Pacifica crisis
Kim Kaufman
kim.kaufman at att.net
Thu Jan 11 00:15:06 PST 2018
Oh, knock it off, Tracy. This is tired.
Kim
From: tracyrose at gmail.com [mailto:tracyrose at gmail.com] On Behalf Of Tracy Rosenberg
Sent: Wednesday, January 10, 2018 11:46 PM
To: Kim Kaufman <kim.kaufman at att.net>
Cc: GRC <grc at peak.org>
Subject: Re: [grc] Pacifica crisis
Kim,
Don't troll GRC.
- Tracy
On Wed, Jan 10, 2018 at 11:36 PM, Kim Kaufman via grc <grc at maillist.peak.org <mailto:grc at maillist.peak.org> > wrote:
Tracy –
There’s no need to 1) lecture me, and 2) sling some bullshit to relieve peoples’ anxiety. I will leave it to the readers here to determine for themselves what “finalized” means based on the information given in terms of actual money received, finalized, approved by the PNB – and given to Empire.
Carry on everyone. This is Pacifica.
Kim
From: tracyrose at gmail.com <mailto:tracyrose at gmail.com> [mailto:tracyrose at gmail.com <mailto:tracyrose at gmail.com> ] On Behalf Of Tracy Rosenberg
Sent: Wednesday, January 10, 2018 10:19 PM
To: Kim Kaufman <kim.kaufman at att.net <mailto:kim.kaufman at att.net> >
Cc: GRC <grc at peak.org <mailto:grc at peak.org> >
Subject: Re: [grc] Pacifica crisis
Kim,
There's no need to make people feel more insecure than they already feel.
The loan is final. The terms are set (and very desirable) and the board has approved in concept and will finalize tomorrow night.
I think you should find somethign else to do with yourself besides provoking needless anxiety. There's been way too much of that
lately.,
Thanks,
Tracy
On Wed, Jan 10, 2018 at 5:26 PM, Kim Kaufman via grc <grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > wrote:
I’m sure Bill will make an announcement when it’s finalized Up until it’s finalized, it is not finalized.
Kim
From: tracyrose at gmail.com <mailto:tracyrose at gmail.com> <mailto:tracyrose at gmail.com <mailto:tracyrose at gmail.com> > [mailto:tracyrose at gmail.com <mailto:tracyrose at gmail.com> <mailto:tracyrose at gmail.com <mailto:tracyrose at gmail.com> > ] On Behalf Of Tracy Rosenberg
Sent: Wednesday, January 10, 2018 4:41 PM
To: Kim Kaufman <kim.kaufman at att.net <mailto:kim.kaufman at att.net> <mailto:kim.kaufman at att.net <mailto:kim.kaufman at att.net> > >
Cc: David Goodman <david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradioorg <mailto:david at ibisradio.org> > >; GRC <grc at peak.org <mailto:grc at peak.org> <mailto:grc at peak.org <mailto:grc at peak.org> > >
Subject: Re: [grc] Pacifica crisis
Hi Kim,
Yes, there is. I can provide the escrow account number, although I don't see the point of doing that on a list-serv.
The last funds are moving into the escrow account in the next day or two as large sums of money don't move instantaneously.
Sometimes people confuse emails from people who are still reacting to an outcome somewhat different than the one they were expecting, with facts.
The bridge loan is finalized. The board will sign off on it tomorrow night.
Thanks,
Tracy Rosenberg
On Wed, Jan 10, 2018 at 3:46 PM, Kim Kaufman via grc <grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > wrote:
Here's another version that comes from a different source, unlike the three
below which all seem to come from the same source. It does, however, have
Pacifica in the name as it comes from the iED, Bill Crosier, about an hour
ago. His complete email is below my signature, for those who care to read
it, but the salient point regarding the issue at hand is this:
This is not finalized yet, but some friends of KPFK, possibly with some
others, have pledged $2 million for a short-term loan to Pacifica so that
all of the ESRT judgment can be paid off. This loan would only be for a few
months. So assuming we can finalize that soon, then the immediate crisis of
seizure of assets by ESRT will be averted.
In other words, there's no actual loan yet.
Kim
Email from Bill Crosier, Pacifica's iED:
Skip to the bottom to read the big issues and my big worry about Pacifica's
survival, if you don't have time to read all of this.
I have not had time to respond to the flood of e-mails about these issues -
if I answered a quarter of them, I would not have time to get any real work
done.
But I want to clear up some misinformation. Many of you are not going to
like what I have to say, but it's the truth and you deserve to hear that.
There's way too much rhetoric and assumptions stated as fact, that are going
around. I believe in real news, not fake news.
The bankruptcy vs loan issue is basically moot, at least for now, because
the PNB has decided to pursue loans. But I remain very worried about our
financial situation, with our growing debt and no approved plans to pay it
off. Pacifica did better financially overall last year (with a net loss of
$184K for FY2017, vs losses of $597K in FY2015 and $980K in FY2016), but
it's still not good enough to pay off our debts, and the amount we owe to
Empire State Realty Trust keeps growing every month. We have been kicking
the can down the road for years, accumulating debt and hoping we'll be able
to reverse the downward trend the next year, but it has not been happening.
But we can't keep doing tht forever. Other creditors, besides ESRT, will
come forward, and we have to find funds for our employee retirement funds
and other obligations.
This is not finalized yet, but some friends of KPFK, possibly with some
others, have pledged $2 million for a short-term loan to Pacifica so that
all of the ESRT judgment can be paid off. This loan would only be for a few
months. So assuming we can finalize that soon, then the immediate crisis of
seizure of assets by ESRT will be averted. The PNB also approved, last
Thursday, that we pursue another larger and longer-term loan that would pay
off the first loan and also some other immediate financial obligations, such
as the employee retirement fund and part of the accumulating unpaid tower
lease fees for the Empire State Building.
About filing for bankruptcy:
I, and all of our officers, recommended last month that Pacifica file
chapter 11 bankruptcy, because we had no written forbearance agreement from
ESRT and no indication that they'd give us one, and because ESRT had hired
attorneys to file their judgment in every state where we operate and even
went to the extra expense and trouble to personally serve the notice on the
National Office in order to cut a few days off of the mandatory waiting
period in California (before they could seize assets). That also allows them
to place liens on all of our properties. We had consulted with two
bankruptcy attorneys over the last few months, both of whom had advised us
to avoid bankruptcy if possible, but who had told us we should file chapter
11 when and if we got to this point, in order to protect our assets and
continue operations. Two other attorneys also advised us to file ch. 11 if
we had no written forbearance or stand-still agreement with ESRT. The
attorneys told us that getting a loan before bankruptcy would put Pacifica
at a very significant disadvantage (and cost us a great deal of additional
money) if we had to file bankruptcy later (which I still think may be
likely, as we have no repayment plan for the loans and the amount we owe to
ESRT increases every month). Although bankruptcy does indeed add additional
costs, there is the potential (not guaranteed, though) that we could
substantially reduce the amount of future tower lease obligations, possibly
saving us $1 million or more. Chapter 11 would also ensure that other
creditors could not take legal actions to seize assets, and it would give us
time (up to several years) to pay off our creditors.
But the PNB majority decided to pursue the loan route, and so that's what we
are doing now. I was pleased that so many friends of Pacifica stepped
forward with this loan, although I'm disappointed that my pleas to the LSBs
for months to help with major fundraising largely were ignored, as donations
(rather than this loan) would have avoided the necessity to pay interest and
other fees for this loan. Thanks to the individual board members and others
who did help, though, even if the PNB as a whole did not do so. It appears
that the possibility of imminent seizure of our bank accounts demonstrated
the urgency of why we need to pay the ESRT judgment, and I thank the people
who have agreed to lend us money to do that.
However, I still have significant concerns about the second, larger, loan.
Pacifica has a lot of debt, a bad history of paying our financial
obligations, and inadequate cash flow to pay our current obligations
(including the WBAI tower lease), and so lenders are going to insist that
provisions be put in any loan agreement to ensure that they get paid back.
For the short-term $2M loan, the KPFK/PRA building will be used as
collateral. I have not seen the loan documents yet for it, but because the
loan is from friends of Pacifica, I'll hope they are reasonable. But for the
longer-term larger loan, I worry about the conditions that a lender may
insist on. We looked at a loan in November to pay the ESRT judgment, but
when we got the loan document details, we found we would have been in
default on the first day of the loan and thus would be at the lender's mercy
immediately. Some of the problems could have been fixed by correcting
information in those docs, but there were multiple other default triggers
that we would not be able to avoid, because they required us to do things we
would not be able to do. That loan would have put the collateral (the
KPFK/PRA building) immediately at risk of foreclosure. I'm worried that the
second loan we're looking for may have similar problems. We don't have a
lender identified yet, and no loan documents to review. But we have a loan
broker looking, and I put him in touch with a bank who I'm told may be
friendly to Pacifica. I'm hoping for the best but being cautious. It is
critical that the PNB thoroughly review loan documents before approving them
to make sure they are acceptable, especially because the second loan may
require using all of our buildings as collateral, thus putting all of them
at risk of foreclosure in the event of default.
In the long term (which should be this year), the PNB MUST approve a
financial recovery plan, that includes paying off our debt. One significant
part of our debt is disputed, but all of the rest must be paid. That's going
to require that we not only break even, but generate surpluses, and/or that
we use some of our assets to pay the debt, such as approving a signal swap
for one of our stations. All of our stations must fulfill their Central
Services obligations each month so we can hire adequate personnel for the
National Office. Lack of enough senior accounting staff is why we're so far
behind with bookkeeping and audits, and why our tax exemption is again
threatened. But that takes money.
Specifically, WBAI must make changes in how they operate, including some
changes in programming and how fund drives are conducted, as they have not
been able to make CS payments even though they have paid zero on their tower
lease since June. Programs with few listeners to and which no one supports
are not fulfilling our mission, no matter how good the programmers may think
they are. Fund drives that drive off many of the remaining people don't help
our mission either.
WPFW also needs to make CS payments each month. They are doing better than a
couple of years ago, but are still struggling and are again getting behind
on those CS payments.
Even KPFA, which has been doing better than our other stations in recent
years, needs to make some changes, as they had a $187K deficit last year.
They dropped below KPFK in revenue but continue to have the highest expenses
(mostly for personnel) of all of our stations.
KPFK has been doing better in the last year but I worry about the projected
increase in spending for this year, and how they'll raise the extra revenue
to support that.
KPFT has been doing significantly better financially in the last six months,
with fewer fund drive days while making C.S. payments and payments on its
transmitter loan, every month since August. This is with the smallest paid
staff of any of our stations. But they are trying to figure out how to
afford the paid staff they need, including a Program Director.
We also need to get our employee retirement fund payments up to date for all
stations, as no money has been put into that for the last three years. KPFK
has set aside money for that in 2017, but our pension fund administrator
told us last year that we had to fund all stations' retirement, and could
not fund just one of them at a time.
Board interference and micromanaging programming and station operations must
stop. Our boards should be setting policy and helping with fundraising and
getting more listeners, not in raising hell if an unpopular program that
listeners don't support is replaced or moved around in the schedule to make
way for something new or for a quality program from one of our other
stations, or if a needed personnel change is made.
I continue to be very concerned about our extreme levels of board
dysfunction. We should not need to have 3-5 hour long (sometimes longer,
including the executive sessions) PNB meetings every week, sometimes twice a
week, and still we are not able to get through the agendas. It should not
take an hour or more to get through the public session agenda approval in
each meeting, and then have to argue over the executive session agenda at
length as well. We have committee and LSB meetings, too, and I ask you to
think about what (meaning how little) our boards and committees are
accomplishing in all of that time. We've had Bylaws amendments, mostly ones
to help make our boards function better, on the agenda since early December,
but we have not gotten to them, and it's probably too late now.
Some on our boards especially don't want to hear this, but we have to make
changes to our Bylaws regarding our governance. It is not working. It is
hindering, rather than helping, to fulfill our mission. It is driving away
major donors and interfering with station operations.
The big questions:
* Are we willing to make some changes to help Pacifica not just survive, but
grow in order to better fulfill it's mission?
* Or will we continue to spend so much time and energy fighting with each
other and ignoring the impending financial disaster that's coming?
If we can't make some changes to make sure we can pay all of our bills, and
adequately fund the National Office so we can get audits and other necessary
work done so we don't lose our tax exemption, there may not be a Pacifica
around next year to fight about.
I plan to work on changes to our Bylaws this year, specifically to improve
board function while helping rather than hurting our mission. This is one of
the main reasons I supported the hire of a new interim Executive Director
and recommended to the PNB that they hire the new person that the Personnel
Committee found - so I'll have some time for that. The new person looks very
well qualified, too. (I'll give more details in the next few days, but we
need to get the written agreement in place first for the new person.)
Bill
-----Original Message-----
From: grc [mailto:grc-bounces at maillist.peak.org <mailto:grc-bounces at maillist.peak.org> <mailto:grc-bounces at maillist.peak.org <mailto:grc-bounces at maillist.peak.org> > <mailto:grc-bounces at maillist.peak.org <mailto:grc-bounces at maillist.peak.org> <mailto:grc-bounces at maillist.peak.org <mailto:grc-bounces at maillist.peak.org> > > ] On Behalf Of David Goodman
via grc
Sent: Wednesday, January 10, 2018 2:04 PM
To: Tracy Rosenberg <tracy at media-alliance.org <mailto:tracy at media-alliance.org> <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> > <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> > > >
Cc: GRC <grc at peak.org <mailto:grc at peak.org> <mailto:grc at peak.org <mailto:grc at peak.org> > <mailto:grc at peak.org <mailto:grc at peak.org> <mailto:grc at peak.org <mailto:grc at peak.org> > > >
Subject: Re: [grc] Pacifica crisis
Thank you Tracy. Thank you Ann. Good (if only temporary) news.
cheers,
dg
On Wed, Jan 10, 2018 at 4:57 PM, Tracy Rosenberg <
<mailto:tracy at media-allianceorg <mailto:tracy at media-allianceorg> <mailto:tracy at media-allianceorg <mailto:tracy at media-allianceorg> > <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> > > > tracy at media-alliance.org <mailto:tracy at media-alliance.org> <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> > <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> <mailto:tracy at media-alliance.org <mailto:tracy at media-alliance.org> > > >
wrote:
> It's also in the San Francisco Chronicle, the Bay Area newspaper of
> record.
>
> On Wed, Jan 10, 2018 at 1:54 PM, Ann Garrison via grc <
> <mailto:grc at maillistpeak.org <mailto:grc at maillistpeak.org> <mailto:grc at maillistpeak.org <mailto:grc at maillistpeak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > wrote:
>
>> It has been confirmed on the air on KPFA, by the KPFA Evening News,
>> Work Week Radio, and Upfront. -Ann Garrison
>>
>> For real,
>> @AnnGarrison < <https://twitter.com/AnnGarrison?lang=en>
https://twitter.com/AnnGarrison?lang=en>
>> Independent Journalist,
>> SKYPE: Ann Garrison, Oakland
>> 415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > <tel:415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > >
>>
>>
>> On Wed, Jan 10, 2018 at 1:44 PM, David Goodman <
<mailto:david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > <mailto:david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > > > david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > <mailto:david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > > >
>> wrote:
>>
>> > Independent of the authors of that article - and any other source
>> > that
>> has
>> > Pacifica in the name...
>> >
>> >
>> > On Wed, Jan 10, 2018 at 4:24 PM, Ann Garrison
>> > < <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> > <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> > > > anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> > <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> <mailto:anniegarrison at gmail.com <mailto:anniegarrison at gmail.com> > > >
>> > wrote:
>> >
>> >> Independent of whom? -Ann Garrison
>> >>
>> >> For real,
>> >> @AnnGarrison < <https://twitter.com/AnnGarrison?lang=en>
https://twitter.com/AnnGarrison?lang=en>
>> >> Independent Journalist,
>> >> SKYPE: Ann Garrison, Oakland
>> >> 415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > <tel:415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > > <(415)%20503-7487>
>> >>
>> >>
>> >> On Wed, Jan 10, 2018 at 1:20 PM, David Goodman
>> >> < <mailto:david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > <mailto:david at ibisradio.org <mailto:david at ibisradioorg> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > > > david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradioorg> > <mailto:david at ibisradio.org <mailto:david at ibisradio.org> <mailto:david at ibisradio.org <mailto:david at ibisradio.org> > > >
>> >> wrote:
>> >>
>> >>> I'm on deadline at the moment. Has anyone independently verified
>> >>> that the money has been secured or that the Board won't take the
>> >>> Interim Executive Director's advice to file Chapter 11?
>> >>>
>> >>> Cheers,
>> >>> dg
>> >>>
>> >>>
>> >>> On Wed, Jan 10, 2018 at 4:06 PM, Ann Garrison via grc <
>> >>> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > wrote:
>> >>>
>> >>>> For anyone who's been wondering about it: "Paying off the
Judgement,"
>> >>>> <http://pacificainexile.org/archives/2537>
http://pacificainexile.org/archives/2537
>> >>>>
>> >>>> For real,
>> >>>> @AnnGarrison < <https://twitter.com/AnnGarrison?lang=en>
https://twitter.com/AnnGarrison?lang=en>
>> >>>> Independent Journalist,
>> >>>> SKYPE: Ann Garrison, Oakland
>> >>>> 415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > <tel:415-503-7487 <tel:415-503-7487> <tel:415-503-7487 <tel:415-503-7487> > >
>> >>>> _______________________________________________
>> >>>> grc mailing list
>> >>>> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > > > grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> <mailto:grc at maillist.peak.org <mailto:grc at maillist.peak.org> > >
>> >>>> <http://maillist.peak.org/mailman/listinfo/grc>
http://maillist.peak.org/mailman/listinfo/grc
>> >>>>
>> >>>
>> >>>
>> >>>
>> >>> --
>> >>> I.B.I.S. Radio
>> >>> Jamaica Plain, Boston, MA
>> >>> [
>> >>> *Producers of "SOUND and FURY" & * *"LOCAL EDITION: The BINJ
>> >>> Report"*]
>> >>>
>> >>>
>> >>>
>> >>
>> >
>> >
>> > --
>> > I.B.I.S. Radio
>> > Jamaica Plain, Boston, MA
>> > [
>> > *Producers of "SOUND and FURY" & *
>> > *"LOCAL EDITION: The BINJ Report"*]
>> >
>> >
>> >
>> _______________________________________________
>> grc mailing list
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>> <http://maillist.peak.org/mailman/listinfo/grc>
http://maillist.peak.org/mailman/listinfo/grc
>>
>
>
>
> --
> Tracy Rosenberg
> Executive Director
> Media Alliance
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Tracy Rosenberg
Executive Director
Media Alliance
2830 20th Street Suite 102
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www.media-alliance.org <http://www.media-alliance.org> <http://www.media-alliance.org>
415-746-9475
510-684-6853 Cell
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Tracy Rosenberg
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Media Alliance
2830 20th Street Suite 102
San Francisco, CA 94110
www.media-alliance.org <http://www.media-alliance.org>
415-746-9475
510-684-6853 Cell
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