Sheridan Broadcasting Network Founder Ron Davenport Sr. has confirmed that the company’s strategic bankruptcy plan aimed at giving it time to finalize the buy-out of its partner Access One and take control of the American Urban Radio Network was unsuccessful, and as a result, Sheridan has lost its 51 percent stake in AURN.
“The result is the partnership is dissolved. Sheridan still owns three radio stations; in Buffalo, NY., Birmingham, Al., and Atlanta, Ga., but we are out of the partnership with Access,” Davenport told the New Pittsburgh Courier.
“The other effect is that this will take Sheridan out of bankruptcy. So, we are fine. Sheridan Broadcasting Network and Sheridan Broadcasting Company are fine, and are looking for new worlds to conquer.”
As Ron Davenport Jr., SBC’s special counsel and president of the radio division told the Courier in March, SBN and the National Black Network partnered to create AURN in 1991. In 2004, NBN’s parent company, Access One borrowed $94 million from the hedge fund Guggenheim Capital. They couldn’t pay it back.
“By 2005, they were in technical default, and in 2011 we got an email from Access One saying its lenders effectively controlled the company,” said Davenport Jr. “By this time NBN had no operations and no employees. It was just a checking account.”
IN 2012 Access One sued SBN, saying it was fiduciary irresponsible. The hedge fund demanded that AURN be sold, and Sheridan agreed to buy it in three installments. It missed the final $7.5 million payment. The bankruptcy filing was designed to give them time to complete the deal.
Jerry Lopes, AURN president for program operations and affiliations, was unavailable for comment on what this means for the network.
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