The Times-Tribune from Scranton, Pennsylvania • 18

-THE SCRANTON TIMES, THURSDAY, JUNE 7, ISM- 15 vvvmu- I oaie rroviaes wwners uaranreea income The ale of WDAU-TV to Southeastern Capita) Corp. of Atlanta, Ga, will provide the station's current owren with a guaranteed income for at least the next IS yean. Term of the sale agreement are spelled out in documents on file for public inspection in the principal offices of Scrantra Broadcasters, Inc. 415 Lackawanna Ave. The on-again, off -again sale of the station was approved on May I by the Federal Communications Commission a development reported exclusively by The Times.

A comment period is now under way during which anyone opposing the sale can file objections or appeals, but attorney Robert Marchman, legal counsel for southeastern Capital and S.B. -Television, the subsidiary that Mill aim WTlAft mmAA irA mr that njt unmw AhtAtinrw broadcast out of the Kresge Building under its current owners, with a 'ienants-uvcommon' agreement giving both parties access to the building. Both the $103,675 annual rental and the $1.2 million to be id at the conclusion of the noncompetition period would in addition to the $16 2 million purchase price of the WDAU stock. Southeastern Central already has placed a refundable deposit of 625.000 in an interest -bearing escrow account in Northeastern Bank of Pennsylvania, and a non-refundable $175,000 has been advanced to Scranton Broadcasters the form of an option payment. Thus, Scranton Broadcasters already holds a total of $1 million from Southeastern Capital toward the total purchase price.

On the day of the closing, the buyers will pay to the sellers another $7 million, which Southeastern Capital says it plans to obtain through loans totaling $7.5 million. Also at the closing, the buyers will issue to WGBI radio an interest-bearing note totaling $2.2 million for its shares of stock. The total of those three figures ($1 million, $7 million and $2.2 million), represents the total purchase price of $10 2 million. However, the Scranton Broadcasters stockholders must make some expenditures of their own, according to the sale agreement. As of November 1963, WDAU had an outstanding loan at Northeastern Bank totaling $1,490,000.

As part of the sale At the same time, though, there are two provisions of the sale agreement that guarantee the sellers additional income well after the sale becomes final. One, a non-competition agreement, prohibits the sellers from competing against the new owners in the local TV market for a period of five years. Two years after that period ends, according to the sale agreement. Southeastern Capital will pay $300,000 to each of the principal stockholders of Scranton Broadcasters Marcella Megargee Hoi-comb, Scranton; Katherine Megargee Collins. Ardmore; Mary Megargee Griffin, Dalton, and Jean Megargee Reap, Bear Creek village.

The second provision involves leasing of the WDAU studios to the new owners. The sale of the station actually involves a stock transfer, with the shares of stock now held by the local owners being sold to the new owners. However, Scranton Broadcasters and the Megargee family will continue to own the Kresge Building on Lackawanna Avenue, where the WDAU studios are housed. At the closing. Southeastern Capital will enter into an agreement in which it will lease back 18.950 square feet of space on the first Door and mezzanine of that building, plus 1,925 square feet in the basement.

The lease agreement will be in effect for 15 years, and will produce a base rental of $103,675 per year for Scranton Broadcasters and its four stockholders. WGBI Radio, which is not being sold, would continue to agreement Marcella. Jean Reap. Mary Griffin and Kathep-ine Collins are to assume responsibility for repayment of million of that loan. The corporation (Scranton Broadcasters) will assume the balance.

Thus, Southeastern Capital will take over the stations with no outstanding debts to worry about. WDAU's current owners also will pay all fees and taxes' related to the sale; all real estate and sewage taxes on WDAU properties through the end of the fiscal year which the sale is consummated, and all water and electrical charges against the station. The agreement of sale takes into account the fact that one lawsuit remains unresolved as a result of an earlier, unsuccessful attempt to sell the station, and that a second lawsuit may yet be filed. Under terms of the agreement, the sale to Southeastern Capital will go through in spite of the actual and potential lawsuits, with Scranton Broadcasters taking steps to protect the buyers from any liability. 'U.

The stock involved in the purchase totals 20 shares of Class A voting stock, and 35 snares of Class non-voting, stock. At the dosing, the purchase price would be distributed among the sellers based on the number of shares each holds: WGBI would receive the estate of the late E. McGargee would get $1,488,800, and the remaining stockholders. $1,433,400 each. are anticipated.

He tola The Times the comment period will conclude late in June, and that a firm closing date should be settled upon within the next 30 days. The closing likely will come In late summer, he said. The sale agreement involves a total price of $10.2 million, according to documents filed at the WDAU offices. That would be nearby $2 million less than Scranton Broadcasters and its principal stockholders would have received had an earlier deal with a New York City-based consortium not fallen through. In addition, other financial terms of the proposed sale agreement iau mm ui wi ami neen uuereu in mk previous purchase offer.

Former Car Dealer Charged with Defrauding Customers ers who wanted the dealer OUAKERTOWN. Pa. (API Theodore Fritsch said Alfred business Nov. 4, surrendered "Rather than paying that, been set for June 27 before be kept the money the business, so the customers Mrs. Stump.

Quakertown National Bank isfy loans on cars bought Genner's dealership! But Fritsch said many the customers are still re rge ship to pay off outstanding loans on trade-in cars with the money. Included in the figure was money intended for warranty and service contracts, Fntsch said. to detectives Wednesday afternoon and was arraigned before District Judge Kath-ryn Stump here. Three days after the dealership closed, Chrysler Credit Corp. won a court order permitting it to seize 105 vehicles from the lot after it J.

Genner was charged Wednesday with accepting some $44,600 from customers during a six-month period. The money was supposed to go for sales tax ana registration fees on vehicles bought at Quakertown Dodge he said. The owner of a defunct Bucks County car dealership has been charged with defrauding 119 customers of more than $98,600 that was intended for state taxes and fees and loan payments on trade-in vehicles. Deputy District Attorney C. lying loans on trade-ins had their cars but they didn't have valid titles or registrations," Fritsch said.

Fritsch said Genner also pocketed more than paid to the dealer by custom tney thought would be theft by unlawful taking, theft by deception and thett by failure to make required disposition of funds. A preliminary hearing has and Chrysler Credit agreed earlier this year to pay the sales taxes for most of the victims, permitting the owners to receive dear title to their vehicles when they sat satisfied as part of sales agreements with Quaker-town Dodge. Genner. who moved to Kobe Sound, after closing the 1 ifl Trauma Day 1 Qetit immunity OB Regional Traum OP XM center. TrT, the teat PCT who 1 ranter olthe I x-ray r- cTa vUtVent time said traum P-, to aid the time.

arrive on SU Abda. he located mess- ffl CMC.jn.- A.W sornewn ready lorTchatce; sa a 5'S no sJcfrom tX forernost oatienl 2hb can to CM ft. 1 up pocedures in 'father rPf thc 'potntd k. personnel or preve oaraoie tn w5 ana oceow" anotnei tne WyC. bacR- icolCent' 'rMC From Soew the support oje and the N.

loander a patient proa ri our PMlw eopte i beTTr'reWm nattent, mtal, we wo Ilon to community c0fe to that Petn tsinc. 1 than io.w 77 model ic A bv MAcal 1V' ton. einetaerv these t-T CMC P---, continue- TrMCv ott --The driving P1 1 We for hey' "Care re- Hrau as peop 1 -We ve 'rti viorw nc any OA 1" 9- Dr.W" ars Ml UW a1A CSB1 aT dacodents 7S atedtovbJ.urgery and -PJ over- -n- Acute heart a 111 911- VZLb-TolJ TeamasoojI4prphy. Hems'1.