From this morning's TRI Newsletter: Just as we expected, the debtors are authorized by a federal bankruptcy judge in New York to mount a “stalking horse” bid. That primes the process, as a “credit bid” based on the amount owed to them in these Chapter 11 proceedings. The creditors include Fortress and Yucaipa. The big prize is Inner City’s urban WBLS, New York City (107.9).

The court papers reveal that Inner City’s KBLX, San Francisco (102.9) may be sold separately. The federal bankruptcy court specifies that “the debtors reserve the right, in consultation with the secured lenders, to accept bids solely for the assets related to the debtors’ FM station located in the San Francisco market.” That is urban AC KBLX. So brokered KVTO, Berkeley/1400 and KVNN, Santa Clara/1430 stay with the other assets in the package. We also know that since Inner City is over the FCC limit for FMs in Columbia, SC, one of those FMs will go into a divestiture trust, because the buyer can’t own it. So to re-cap: bids are due February 13 by 5pm. Rothschild is handling the deal as adviser and investment banker. The creditors will offer a stalking horse bid. If there are any other bids, there will be an auction on February 16. And then a “sale hearing” shortly afterwards. The process, resisted so long by the Sutton family, is now moving fast. There's no charge to subscribe to the daily TRI Newsletter. Sign up to get it or any of the other Radio-Info.com newsletters by email, here.