- 3 -
Acquisition of Radio Station
In late 1987, petitioner located a radio station in
Beaumont, Texas, struggling financially and in bankruptcy.
Petitioner developed a business plan for acquiring, upgrading,
and profitably operating the radio station (the venture).
In December 1988, petitioner met Mark W. White, Jr. (Mr.
White), a former Texas Governor, and discussed the venture.
After their meeting, petitioner negotiated favorable contracts
and organized Modern World Media, Inc. (Modern World) with Mr.
White, to acquire the radio station.3 In the beginning of 1990,
using his many contacts, Mr. White obtained bank financing for
the venture from First City, Texas-Houston, N.A. (First City
Bank). As a condition for the financing, First City Bank
required a letter of credit to secure $5.5 million in bank loans.
Mr. White introduced petitioner to various wealthy Texas
business people. Through these introductions, Mr. White and
petitioner convinced H. Ross Perot (Mr. Perot) to commit a $2.5
million letter of credit for the venture through one of Mr.
Perot’s companies, Gnat Robot Corp.
During 1990, First City Bank advanced funds in an amount
less than $5.5 million. With the funds that Mr. White and
petitioner received from First City Bank, they acquired the radio
3 Because Mr. White was seeking the Democratic nomination
for the Texas governorship, Mr. White did not initially take an
equity interest in Modern World.
Page: Previous 1 2 3 4 5 6 7 8 9 10 11 12 13 14 15 16 17 18 19 20 Next
Last modified: May 25, 2011