April 16, 2012
Emmis Communications and Mexico City-based Grupo Radio Centro have amended the agreement under which GRC operates Emmis' KXOS-FM/Los Angeles to potentially substantially reduce the price GRC will pay for the station. The original April 2009 agreement had GRC operating KXOS under an LMA for seven years, with the right to purchase the station for $110 million during that term, while Emmis could require GRC to buy the station for the same amount at the end of the term.
Under the amended agreement, GRC's "qualified designees" can purchase KXOS for $85.5 million, provided the purchase closes by March 27, 2013. If the closing doesn't occur on or before that date, the LMA stays in effect and the price reverts to $110 million.
GRC, based in Mexico City, is not eligible as an FCC licensee, and so has assigned its rights in the original put and call agreement with Emmis to qualified designees 93.9 Holdings and 95.9 LicenseCo. With the amendment, it also exercises its call option in the agreement.
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