Agenda Packets - 1986/05/19 - Laserfiche WebLink

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OrrWHUMOR WOL" FOS rEA SWARD AND DONNf11Y North Suburban Cable Commission April 28, 1966 Page Six system in Brooklyn Park, Minnesota. He has also served as System and Regional Manager for over 90,000 subacribs:s in Columbus, Ohio for American Television and Communications. Hauser Communications, Inc., which will be the manager of your cable system, has experience in managing the Arlington system, Brooklyn. Center system, and is intending to acquire a 23,000 subscriber system in Montgomery County, Maryland. Upon completion of the Transfer Transaction, lour cable System's management will be provided by North Central pursuant to a management agreement with Group W. Group W, however, will remain ultimately responsible to the Commission and Member Cities for proper management of the System. If North Central failed to properly discharge such management responsibilities, Group W would be liable for any harm or loss incurred by System users or the Commission or Cities, and would be able to replace North Central with another manager to satisfy such management obligations. The information provided to us indicates that North Central, through its principals, has cable management capability and experience that may be sufficient to satisfy the technical ability factor as applied to your cable system. Group W remains legally responsible for proper management end will be able to monitor and replace North Central if such management is not adequate. Based upon the review of the information provided, it would appear that neither the Commission nor Member Cities could reasonably withhold approval of the Transfer Transaction based upon the technical ability of the Buyers, Group W and North Central. C. Financial stability The financial stability factor relates to whether upon completion of the Transfer Transaction, the franchise holder or guarantor has the financial resources available or committed to not only acquire the System, but also to meet the existing franchise requirements. It is not appropriate to evaluate the financial resources of the Buyers for the purpose of the Transfer Transaction. The Buyers, as stockholders, are not required to commit their individual corporate assets to the performance of Group W Incorporated or its subsidiaries. Although Westinghouse Incorporated has at times apparently provided financial assistance to Group W, as a stockholder Westinghouse is not be required to commit financial resourres to the performance of its subsidiary. Therefore, following the Transfer Transaction, nothing will change as to the stockholder resources legally committed to Group W.