Report No. MM95-14 MASS MEDIA ACTION February 24, 1995 COMMISSION CONSENTS TO ASSIGNMENT OF LICENSE OF KLHI-FM, LAHAINA, HI The Commission has granted the application for involuntary assignment of license of KLHI-FM, Lahaina, HI, from Pacific Isle Broadcasting, Inc. to Howard R. Green, Receiver, and the application for voluntary assignment of the license of KLHI-FM from Howard R. Green, Receiver, to Lahaina Broadcasting Co., Ltd., (LBC). In taking this action, the Commission denied the application for review filed by Dale J. Parsons, Jr.; denied the informal objections filed by Dale J. Parsons, Jr., and Virginia Parsons; dismissed as moot the request for emergency consideration filed by Howard R. Green, Receiver; dismissed as moot the request by Parsons for issuance of a cease and desist order and imposition of a monetary forfeiture against the Receiver; denied the Receiver's request for special temporary authority to operate with the existing facilities of KLHI-FM despite certain technical deficiencies; and ordered the receiver to bring KLHI-FM into full compliance with the FCC's technical rules within 30 days from the release date of the Order in this proceeding. The Receiver, Howard R. Green, was appointed by a bankruptcy court which ruled that a prior assignment of the KLHI-FM license from Pacific Isle Broadcasting,Inc. to Parsons was an impermissible, avoidable post-petition transfer pursuant to Section 549 of the United States Bankruptcy Code. The court also ruled that Pacific Isle was the "alter-ego" of the debtor-in- bankruptcy. The Commission found that the application for review, the petition to deny, and the informal objections were without merit and that there were no substantial and material questions of fact warranting further inquiry. The Commission stated that LBC's qualifications have not been challenged. Further, based upon its review of the applications, the Commission found that Receiver and LBC are qualified to be Commission licensees and that -more- -2- grant of the Pacific Isle-to-Receiver involuntary assignment application and the Receiver-to-LBC voluntary assignment application were in the public interest. The Commission stated further that its grant of these applications will be subject to and without prejudice to whatever action, if any it may deem appropriate in the event the decisions of the Bankruptcy Court are reversed or otherwise modified on appeal. Action by the Commission February 23, 1995, by Memorandum Opinion and Order (FCC 95-67). Chairman Hundt, Commissioners Quello, Barrett, Ness, and Chong. -FCC- News Media contact: Patricia A. Chew at (202) 418-0500. Mass Media Bureau contact: Charles Jay Iseman at (202) 418- 2720.