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SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
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FORM 10-K/A-2
ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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For the fiscal year ended December 29, 1996 Commission file number 33-99622
BUSSE BROADCASTING CORPORATION
(Exact name of registrant as specified in its charter)
DELAWARE 38-2750516
(State of Incorporation or organization) (IRS Employer Identification No.)
141 East Michigan Avenue, Suite 300
Kalamazoo, Michigan 49007
(616) 388-8019
(Address, including zip code and telephone number,
including area code, of registrant's principal executive offices)
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SECURITIES REGISTERED PURSUANT TO SECTION 12(b) OF THE ACT:
None.
SECURITIES REGISTERED PURSUANT TO SECTION 12(g) OF THE ACT:
None.
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Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15(d) of the Securities Exchange Act of
1934 during the preceding 12 months (or for such shorter period that the
registrant was required to file such reports), and (2) has been subject to such
filing requirements for the past 90 days.
Yes X No
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Indicate by check mark if disclosure of delinquent filers pursuant to Item
405 of Regulation S-K is not contained herein, and will not be contained, to the
best of registrant's knowledge, in definitive proxy or information statements
incorporated by reference in Part III of this Form 10-K or any amendment to this
Form 10-K. [ X ]
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As of March 28, 1997, 107,700 shares of Busse Broadcasting Corporation
Common Stock were outstanding. None of the outstanding shares were held by
non-affiliates.
Indicate by check mark whether the registrant has filed all documents and
reports required to be filed by Section 12, 13 or 15(d) of the Securities
Exchange Act of 1934 subsequent to the distribution of securities under a plan
confirmed by a court.
Yes X No
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DOCUMENTS INCORPORATED BY REFERENCE
None.
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EXPLANATORY NOTE
The sole purpose of this Form 10-K/A is to amend certain information
under the heading LICENSE GRANT AND RENEWAL on page 13 of Busse Broadcasting
Corporation's annual report on Form 10-K for the fiscal year ended December 29,
1996, which was filed with the Securities and Exchange Commission on March 27,
1997, as amended by Busse Broadcasting Corporation's Form 10-K/A-1 which was
filed with the Securities and Exchange Commission on April 29, 1997 ("Busse's
1996 10-K"). Page 13 of Busse's 1996 10-K is hereby deleted and replaced in its
entirety by the following page:
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Communications Act and impose penalties for violation of such regulations. The
Communications Act prohibits the assignment of a license or the transfer of
control of a licensee or of an entity controlling a licensee without prior
approval of the FCC. The Telecommunications Act of 1996 ("1996 Act") was
signed into law by the President of the United States on February 8, 1996;
however, implementation of most of the 1996 Act's provisions which apply to the
Company's business require action by the FCC. Relevant provisions of the 1996
Act are discussed in the sections that follow.
LICENSE GRANT AND RENEWAL. Until implementation of the 1996 Act, television
broadcasting licenses generally were granted or renewed for a period of five
years, but may be renewed for a shorter period upon a finding by the FCC that
the "public interest, convenience, and necessity" would be served thereby.
Under earlier procedures, any person could have filed a competing application
for authority to operate the station and replace the incumbent licensee. In the
vast majority of cases, broadcast licenses were renewed by the FCC even when
petitions to deny or competing applications were filed against broadcast license
renewal applications. The 1996 Act extended the license term for television
stations from five to eight years and requires a broadcast license to be renewed
if the FCC finds that (i) the station has served the public interest,
convenience and necessity; (ii) there have been no serious violations of either
the Communications Act or the FCC's rules and regulations by the licensee; and
(iii) there have been no other violations of the Communications Act or the FCC's
rules and regulations which, taken together, would constitute a pattern of
abuse. Competing applications would be permitted only if an application for
renewal of license were denied after hearing. At the time an application was
made for renewal of a television license, parties in interest could file
petitions to deny, and such parties, including members of the public, could
comment upon the service the station has provided during the preceding license
term and urge denial of the application.
The FCC license renewal for WEAU-TV was granted for a five year term
on November 24, 1992 and expires on December 1, 1997. The FCC license renewals
for KOLN-TV and KGIN-TV were granted for five year terms on May 27, 1993 and
expire on June 1, 1998. Although there can be no assurance that the Company's
licenses will be renewed upon their expiration, the Company is not aware of any
facts or circumstances that would prevent the Company from having its licenses
renewed.
MULTIPLE OWNERSHIP RESTRICTIONS. The FCC has promulgated rules that limit the
ability of individuals and entities to own or have an ownership interest above a
certain level (an "attributable" interest, as defined more fully below) in
broadcast stations, as well as certain other mass media entities. These
rules include limits on the number of radio and television stations that may be
owned both on a national and a local basis. On a national basis, the 1996 Act
generally limits any individual or entity from having an attributable interest
in television stations which have an aggregate natural audience reach in excess
of 35% of all U.S. households. This rule became effective on March 15, 1996.
The Company is unable to predict the effect of such changes.
On a local basis, FCC rules currently allow an entity to have an
attributable interest in only one television station in a market. In addition,
FCC rules, the Communications Act or both generally prohibit an individual or
entity from having an attributable interest in a television station and a radio
station, daily newspaper or cable television system that is located in the same
local market area served by the television station. Proposals currently before
the FCC would substantially alter these standards. For example, in a pending
rulemaking proceeding, the FCC suggests narrowing the geographic scope of the
local television cross-ownership rule from Grade B to Grade A contour overlap
but only if the stations are located in different DMAs, although existing
combinations might be grandfathered. In the same proceeding, the FCC also
proposes eliminating the TV/radio cross-ownership restriction entirely or at
least exempting larger markets. In addition, the FCC is seeking comment on
issues of control and attribution with respect to local marketing agreements
entered into by television stations. In addition, on June 1, 1995, the FCC
released an interim policy announcing that during the pendency of the foregoing
rulemaking, it will not approve assignments or transfers of control of
television licenses involving LMA's where the programmer owns an attributable
interest in another station in the same market and loans funds to a station and
holds an option to purchase the station. This interim policy does not apply to
the Company's arrangements with McPike and Comisar because such policy applies
only where (i) an option to purchase a station or (ii) an assignment or transfer
of control is involved. It is unlikely in any event that this rulemaking will be
concluded in the immediately foreseeable future, and there can be no assurance
that any of these rules will be changed or what will
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of 1934, the
registrant has duly caused this report to be signed on its behalf by the
undersigned, thereunto duly authorized.
BUSSE BROADCASTING COMPANY
Date: May 5, 1997 By: /s/ James C. Ryan
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James C. Ryan
Chief Financial Officer
(Principal Financial Officer and
Principal Accounting Officer)