CINDY ELLEN RUSSELL / CRUSSELL@STARBULLETIN.COM
The parent company of the new owner of KGMB-TV in Honolulu has interests in communications, publishing, newspaper, cable and broadcasting companies. They include a firm whose subsidiaries operate five television stations and a TV translator in Alabama, Texas, Wyoming and Nebraska. CLICK FOR LARGE
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New owner of KGMB-TV flush with media interests
There is speculation that MCG Capital might use the station location for a higher and better use
TELEVISION is not completely new to the buyer of KGMB-TV.
HITV Operating Co. Inc. is new, formed for the acquisition by parent company MCG Capital Corp. of Virginia.
However, among vast and varied holdings listed in Securities and Exchange Commission filings, MCG Capital has interests in communications, publishing, newspaper, cable and broadcasting companies. They include Sagamore Hill Broadcasting LLC, whose subsidiaries operate five television stations and a TV translator in Alabama, Texas, Wyoming and Nebraska.
However, "we don't have any control-equity investments in TV stations," said Michael McHugh, a managing director of MCG Capital.
While KGMB was for sale from May 2005 until yesterday's announcement, there was industry talk about the highest and best use for the land at 1534 Kapiolani Blvd., which might include temporarily relocating the station and broadcast tower to build a mixed-use high-rise on the site.
MCG won't discuss details publicly.
"I can't comment on our specific plans for the station, except to say that we plan on returning the station to No. 1 in the market," McHugh said.
Employees benefit
KGMB seller
Emmis Communications Corp. paid what it called a success bonus to full-time employees of KHON, when its sale closed.
The one-time bonus was equal to three months' pay and will be repeated for KGMB employees, according to Jodi Wright, internal communications coordinator at Emmis.
"The bonus is intended to reward and honor Emmis Television employees for the value they have brought to their respective stations," she said.
"All eligible KGMB employees received a one-month bonus at the close of the company's first 13 TV (station) sales ... and the remainder of their bonus, two-months' salary, will be paid when the transaction with HITV closes," she said.
Paperwork coming
Emmis also plans to file the required notice of the sale, with the state Department of Labor and Industrial Relations, Wright said, in response to a Star-Bulletin question.
The department did not receive timely notice of Emmis' sale of KHON, so even though SJL Acquisition Corp., now known as Montecito Broadcast Group LLC, took possession of the station on Jan. 27, Emmis kept employees on its payroll until March 31, 2006.
Emmis' failure to file the notice did not preclude SJL from terminating employees from positions targeted for elimination.
The buyer of KGMB has not divulged specifics for the station or its personnel, but indicated to Emmis officials an intention to invest in the station and its operations.
