Pacifica now has 365 days to pay FJC its $3.265m – unless FJC (or the current owner of the loan) decides otherwise

. . . Recital B: the directors have committed Pacifica to “a swap or sale of one or more radio station licenses or a sale of other Pacifica owned assets of sufficient value to repay this Loan (as defined below), or such other sources that will become available” https://mega.nz/#!5NMhHAxI!QzMtaBd0iRTZJ_YNmh2KZ1xKu7Qh_hQ6IcPMVkGWX94 . . .

As the other Bill wrote, about the land where Chris Albertson spent some of his childhood, “TikTok or Tick-Tock, that is the question” . . . Given Pacifica’s age structure, we know the answer. The foundation now has exactly a year to pay $3.265m to another foundation, the Foundation for the Jewish Community, that operates as FJC.

For two whole years, the directors have sat on their paws. See no evil. Hear no evil. Speak no evil. FJC loan? Excuse me? How many millions? Due when? Why worry? Thoughts & prayers. Thoughts & prayers. It’ll just go away. One day we’ll wake up & it’ll be gone. Like a miracle. It’ll just disappear. Yes. One day, it’s like a miracle, it will disappear. Thoughts & prayers. Thoughts & prayers. The loan, under control. Things. This FJC thing, it’ll just run its course. Let it rip. It’ll all work out well. Victory. The next PNB election. Incredible. Leadership. Be appreciative. A lot. A lot. This is what winning looks like. Stronger. Better. Victory. PacificaWorld, RealWorld. Country with a stockpile? Or all pile & no stock – a pile of BS, & a pile of gravestones. (But always a stockpile of nuclear weapons: priorities.) Vicious. Carnage. Keeping Amerika great. USA! USA! USA! Ode not to joy but to the United Scarves of Amerika.

Meanwhile, back in PacificaWorld, it’s from the ballot to the bullet – and the bullet has to be bitten. And now. How to pay the principal of $3.265m has to be decided now. And, rationally, that requires knowledge of the options Pacifica has.

The directors, since 2Apr2018, have lacked not foresight on this but due diligence. It didn’t even require vision; just plain diligence. Everyone knew what has to be re-paid, & when. The question was, how. The 2018 directors, by agreeing to the contract, identified two particular ways of getting the money to FJC: signal swap or sale of assets. The third way was generic, “other sources that will become available” – such as cash provided by another lender. So what’s it going to be: signal swap? buildings sales? extend the loan? find new lender? maybe the Jesse James approach, improving on the Symbionese Liberation Army?

There’s no evidence that research was done on any of this by the then executive director, Tom Livingston. Nor by ED Maxie Jackson III, or ED Grace Aaron, or ED Lawrence Reyes, or the current ED, Lydia Brazon.

So, obviously, the PNB needs to immediately direct ED Brazon to conduct or commission an authoritative report on Pacifica’s options. The PNB meets on Thursday, 2Apr. Will a director make the necessary motion?

Thoughts & prayers. Thoughts & prayers.

Since 2Apr2018, Pacifica’s being & future had been structured most forcefully by the FJC loan. No more. Since mid March, that’s been replaced by the spread of disease, of COVID-19. It’ll collapse Pacifica’s revenue. And well before the principal is due. Pacifica’s executive & national governance aren’t noted ballerinas, nimble. And confirmed cases are cascading. NYC’s first was Su1Mar. 1Mar. The Bay Area shelter-in-place started 0001, Tu17Mar. The US’ first 100k confirmed cases took 68 days, M20Jan to F27Mar. The second took 5 days [UPDATE, W1Apr]. It was as if federal officials were watching Fox & CNN rather than the world news. (Guess Al Jazeera America was ahead of ‘the market’, one suffused with national chauvinism.)

https://www.wsj.com/articles/first-case-of-coronavirus-confirmed-in-new-york-state-11583111692; https://www.sfdph.org/dph/alerts/files/HealthOrderC19-07-%20Shelter-in-Place.pdf (City & Co. of San Francisco); & https://www.cdc.gov/coronavirus/2019-ncov/cases-updates/cases-in-us.html (first case diagnosed M20Jan, publicly reported by CDC the next day)

Will Pacifica’s ‘leadership’ rise to the task?

Thoughts & prayers. Thoughts & prayers.

~~~

The set of loan documents are linked from the below webpage (it consists in the 19July2019 PacificaWatch summary of the loan, including details of the attendant advertising contract Pacifica’s directors agreed to, worth $37 000):

https://pacificaradiowatch.home.blog/what-fjc-has-made-pacifica-do/

Why FJC may no longer own the loan (posted 20July2019):

https://pacificaradiowatch.home.blog/2019/07/20/has-fjc-sold-the-3-265m-loan-is-the-owner-the-marty-and-dorothy-silverman-foundation/

~~~

Please note, as of tomorrow, W1Apr, the $3.265m owed to FJC is no longer a long-term liability: it becomes a current liability. In so doing it significantly worsens Pacifica’s illiquidity quotient, the measure of Pacifica’s incapacity, in terms of current assets, to pay current liabilities, that is, those falling due within 12 months. Even before this $3.265m became a current liability (albeit mitigated by the $2.361m written off by Democracy Now!, announced to Pacificans by ED Maxie at the 12Mar2019 PNB Finance Cttee), Pacifica was last liquid, according to audited balance sheets, at 30Sep2009. Yes, 2009. Pacifica’s latest audited balance sheet is at 30Sep2016 (the FY2017 one, proffered by NETA, wasn’t audited thru lack of supporting documentary evidence). That’s exactly 3½ years ago. And the illiquidity ratio was 11.54: that means every Pacifica $ of current assets was being chased by $11.54 from the short-term creditors (7 356 997 / 637 716 per auditor’s report, p. 2). Micawber would be cheered, yet saddened, seeing someone worse off than himself – splendidly cheered, m’boy.

https://pacifica.org/finance/audit_2016.pdf; also at https://mega.nz/#!YEcTRYID!IIQGPCye8yYMqj3_eOf0voVp8aVTcurd93L_D1Lpr30

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out /  Change )

Google photo

You are commenting using your Google account. Log Out /  Change )

Twitter picture

You are commenting using your Twitter account. Log Out /  Change )

Facebook photo

You are commenting using your Facebook account. Log Out /  Change )

Connecting to %s