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Agenda - Council - 10/22/1996
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Agenda - Council - 10/22/1996
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Meetings
Meeting Document Type
Agenda
Meeting Type
Council
Document Date
10/22/1996
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indicated that Continental of Minnesota would continue as a L.P. and <br />another subsidiary is going to step in as the General Partner. <br /> <br /> I <br /> I <br /> I <br /> <br />:1 <br /> I <br /> I <br /> I <br /> <br /> I <br /> I <br /> i <br /> <br /> 1 <br /> <br />Vose stated that all of this is important because it is the Commission's <br />jpb to decide if the entity purchasing the system is legally and <br />financially qualified. <br /> <br />Bernick & Lifson began to investigate this new subsidiary which was <br />going to purchase these systems and in asking questions were provided <br />with consolidated financial reports on the entire Continental, Inc. <br />nation wide. However, Vose stated that no financial information was <br />received on the merging company, Continental CableVision, Inc. This <br />problem was significant enough to state that information need to be <br />provided or they could not recommend that the transaction be <br />approved. <br /> <br />Vose stated that the final resolution and the final bottom line of all of <br />this is that rather than giving us that additional financial information <br />Continental has agreed to give us a Corporate guarantee. Continental <br />has a policy of not giving Corporate Guarantee's, but top level <br />management of Continental, Inc. has agreed to give a Corporate <br />Guarantee and that has resolved the problem with the legal <br />qualifications. Continental, Inc. is guaranteeing the financial <br />responsibilities and the performance of the existing franchise. <br /> <br />Vose stated that a problem recently arose that two existing entities, <br />Various Meredith Cable Franchise Holding Subsidiaries, and North <br />Central Communication Corporation were going to be dissolved and <br />merged into Meredith new Heritage L.P. which would in turn be <br />d~ssolved into Continental Cable Vision of Minnesota, Inc. <br /> <br />Bernick & Lifson's position on this was that it just wasn't legal or <br />financially possible. This information was just received and they have <br />not yet had time to do the necessary analysis. <br /> <br />The resolution which was attached to the back of the packet does not <br />pertain to that last minute change that Continental has suggested, but <br />also does not mean they can not do than in the future. Vose pointed <br />out that they simply can not do it as part of this transaction. <br /> <br />I <br />I <br />I <br /> <br />Mark Nagel stated that accordance with page #11 of the memorandum <br />he believes that all financial, legal, and technical qualification have <br />been met that are required. <br /> <br />Vose made a suggestion that there may be some language details that <br />need to be worked out as they continue to have dialogue with the <br />company and he suggested that they be allowed to make those changes <br />prior to forwarding the resolution. <br /> <br /> <br />
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