KDHX Files For Bankruptcy With A K-Love Twist

After ending live programming and eliminating all of its volunteer content production roles at the end of January, Double Helix Corporation’s Variety 88.1 KDHX St. Louis has filed for Chapter 11 bankruptcy protection.

KDHX has been victim to a number of internal battles in recent years as volunteer hosts starting with station co-founder Tom Ray were cut from the station, which led to other hosts being dismissed or resigning in protest. That would lead to lawsuits seeking have board members removed for violating the organization’s bylaws leading to a temporary restraining order against the board. Prior to the bankruptcy filing, members of the group “LOVE for KDHX” pledged to give the station $100,000 if it agreed to a change in leadership. disclosed recent financial information and agreed not to sell KDHX’s broadcast license. Should the board agree meet to discuss the offer and their plan, an additional $100,000 would then be placed in escrow until the finalization of an agreement. The board of the station immediately rejected the offer stating, “Repeating the problems of the past — with some of the same actors who contributed to KDHX’s current financial situation — will do nothing to save KDHX.”

In filing for chapter 11 protection, KDHX stated that it had at least $1 million in financial liabilities with its largest debts to board member Mark Hamlin for a $120,000 construction loan, PR firm AHL Consulting, and multiple staff members including Executive Director Kelly Wells, who is owed $73,381. The twist in the filing is that K-Love Inc. will serve as principal creditor loaning KDHX the funds to continue operating through the bankruptcy process becoming one od the top priorities to recoup funds pending creditor and court approval.

INSTANT INSIGHT: The primary way to recoup funds for KDHX is to sell its assets and K-Love has just found its way to enter one of the largest markets it currently does not operate in. The volunteers expected the board to sell the license of KDHX and K-Love is now in place to do just that as it will now have a seat at the group’s restructuring table. Until the past few years, K-Love would avoid markets such as St. Louis where another strong local Christian AC station was firmly established, in this case Gateway Creative Broadcasting’s “99.1 Joy-FM” KLJY, but those days are long gone as it attempts to reach full national coverage for its flagship “K-Love” brand.