[ Federal Communications Commission
]

Audio Services Division --- Mass Media Bureau

ASD Decision Document

FEDERAL COMMUNICATIONS COMMISSION
WASHINGTON, DC 20554

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . .In reply refer to:
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . 1800B3-BSH

September 26, 1996

John F. Garziglia, Esq.
Pepper & Corazzini L.L.P.
1776 K Street, N.W., Suite 200
Washington, DC 20006

Ernest T. Sanchez, Esq.
2000 L Street N.W., Suite 200
Washington, D.C. 20036

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . .In re: KNMX(AM), Las Vegas, NM
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Assignment of License
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . BAL-960611EA
Dear Counsel:

We have on file an application to assign the above-captioned station from Yvette Gonzales, Trustee ("Trustee") to Sangre de Cristo Broadcasting Company, Inc. ("Sangre de Cristo"). On July 26, 1996, Rosario Trujillo and Grupo Adelante, Inc. ("Petitioners") filed a Joint Petition to Deny the application.See footnote 1 Despite the captioning of their pleading, Petitioners do not seek denial of the application, but request instead that the Commission condition its grant of the application upon resolution of the civil action they have instituted against Sangre de Cristo in the Fourth Judicial District Court for San Miguel County, New Mexico.

Sangre de Cristo is wholly owned by Matias Martinez, Jr. and his wife, Connie Martinez. Petitioners allege, both in their instant petition and in their civil suit, that Mr. Martinez was an officer of the pre-incorporated Grupo Adelante who was principally responsible for obtaining bank financing to supplement the funds already collected by the group in order to tender a bid in the bankruptcy court for the assets of KNMX(AM). Petitioners allege that Mr. Martinez breached his duty to act on behalf of Grupo Adelante by obtaining financing in his own name and by bidding on the station assets on behalf of Sangre de Cristo, rather than Grupo Adelante. Petitioners' civil suit alleges counts of breach of fiduciary duty, constructive fraud and conversion.

Petitioners have not provided evidence of a stay or injunction by a local court against the proposed sale. In the absence of such an order from the local court, the Commission has routinely acted favorably on license assignment applications pending resolution of private disputes such as those at issue here. We note, however, that Commission grant of an assignment application merely finds that the parties are qualified under, and the proposed transaction does not violate, the Communications Act of 1934, as amended, and the Commission's rules and policies. As such, it is permissive only and does not prejudice any relief that the parties may ultimately be entitled to under civil suit. Therefore, a grant made without an express condition pertaining to litigation does not afford applicants any greater rights than they would otherwise be entitled to and does not limit the Commission from taking any appropriate future action based on the final outcome of the civil suit.

Accordingly, finding the applicants qualified and that grant of the assignment application would serve the public interest, convenience and necessity, Petitioners' Joint Petition to Deny IS DENIED and the above-captioned application IS GRANTED. We emphasize that our grant of the assignment application is not intended to prejudice any relief to which a court of competent jurisdiction may ultimately determine that any party is entitled.

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Sincerely,

. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Linda Blair, Chief
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Audio Services Division
. . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . . Mass Media Bureau




Footnote:

Footnote 1: An opposition was filed by Sangre de Cristo on Auguust 6, 1996 and a joint reply to the opposition was filed by Petitioners on August 20, 1996.


---- End of Document ----

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Return to Subject:
Assignment Applications -- Private Dispute

Engineering -- Legal -- Commission -- Combined

Audio Services Division -- Mass Media Bureau -- Federal Communications Commission



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