Laserfiche WebLink
FFOST AHSHErARD <br />AND <br />DONNEIIY <br />North Suburban Cable Commission <br />AFril 28, 1986 <br />Page Seven <br />The assets of Group W remain intact at the conclusion <br />of the Transfer Transaction, causing no change from the <br />financial situation which exists for Group W prior to the <br />closing of the Transfer Transaction. while the System's <br />own financial operations and performance will be a mejor <br />factor in determining System services and subscriber costs, <br />the assets, resources and economy of scale advantages of <br />the entire Group W organization will be available to support <br />current System services and costs and to partially lessen <br />any service or cost adjustments that may become necessary <br />in the future. <br />If, in the future, Group W proceeds to transfer its <br />systems to the Buyers, the resources available to Group W <br />will diminish. While such transfers would reduce the assets <br />and resources available for System support, Group W could <br />have "sold -off' its other existing systems at any time, even <br />prior to the Transfer Transaction. A Court would likely <br />conclude that the Member Cities do not have authority to <br />stop Group W from diminishing its assets by seliing other <br />systems. Therefore, such potential for system sale or transfer <br />transactions in the future is not a situation that differs <br />from the existing rights and arrangements under the Member <br />Cities' franchises, and is not a basis for objecting to the <br />Transfer Transaction. <br />Since Group W continues to exist and guarantee performance <br />of your franchises, we cannot discern a reasonable basis <br />to deny the Transfer Transaction based on the financial <br />stability of Group W, Inc. In light of the considerable <br />financial resources available to Group W at the conclusion <br />of the Transfer Transaction for System support, neither the <br />Commission nor Member Cities could reasonably withhold approval <br />of the Transfer Transaction based upon the financial stability <br />factor. Mr. Kevin Cattoor, your financial co-isultant, has <br />concurred in these findin,gs.ISee attached letter) <br />IV. Conclusion <br />Based upon the above analysis, it is our determination <br />that the Commission and Member Cities can not reasonably <br />withhold approval of the Transfer Transaction. <br />very truly yours, <br />OPPEN/H/EIMER WWOOLFF FOSTER SHEPARD AND DONNELLY <br />By / A /n <br />aig urrie <br />CC:csd <br />