Nexstar Broadcasting CEO Perry Sook says it will take two years to get KSNF in compliance with a federal law which required that all commercial stations provide full digital coverage. Other Nexstar stations will have to wait longer.
In a June 30 letter to the Federal Communications Commission, Sook says his company does not have the money to comply with the regulation.
"Nexstar is committed to constructing full-power digital operations for its stations as expeditiously as possible," Sook wrote. "However, Nexstar's financial situation does not allow it to undertake such a large expenditure in any given year. As of March 31, 2006, Nexstar had approximately $472,662,000 in outstanding debt."
Because of that debt, Sook said, Nexstar is funding its digital conversion completely from its cash flow. Sook asked the FCC to grant a waiver allowing Nexstar to complete the conversion on its own timetable.
Nexstar's other southwest Missouri station, KSFX in Springfield would not have to wait as long under Sook's timetable. The conversion date listed for KSFX is December 2006. Five stations would have to wait until December 2008. Sook said Nexstar estimates the total cost of the conversion for all of its stations is $48 million.
Adding to Nexstar's problems: It was four-and-a-half months late in filing the request for an extension.
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"Things are very good and our financial picture is great after the cable battle," says Sook. "We can't afford to comply with the laws of the land because our financial picture is so bleak," says Sook. Everyone else in Springfield and Joplin met the Digital requirements without so much as a blip. Nexstar dances well. Which financial story is correct? Maybe their dancing is around the truth.
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