St. Louis Radio: Bidding War May Start For Bankrupt KDHX

A bidding war has erupted over the broadcast license of St. Louis community radio station KDHX.

Just days before a bankruptcy court hearing where KDHX’s leaders planned to seek approval to sell the station to Christian radio network K-LOVE for $4.35 million (potentially rising to $4.8 million), Gateway Creative Broadcasting, which operates JOY FM 99.1 and BOOST Radio in St. Louis, objected to the sale and offered $5.5 million for KDHX’s assets.

Gateway will urge a judge on Wednesday to establish a bidding process to determine KDHX’s new owner. KDHX, which filed for Chapter 11 bankruptcy in March with $2 million in debt, requires judicial approval for any sale. The station’s board, part of the nonprofit Double Helix, has faced criticism from hundreds of former DJs, volunteers, musicians, and local businesspeople over its management. The board has downplayed these complaints, attributing fundraising declines to critics.

Some KDHX supporters are raising funds for a competing bid to preserve the station as a volunteer-run, diverse music outlet. Gateway’s court filing reveals it began sale talks with KDHX last year, signing a letter of intent in December that included a $400,000 loan. In January, Gateway was surprised to learn KDHX had filed for bankruptcy and proposed K-LOVE as its debtor-in-possession creditor, with loan terms waiving interest and fees if KDHX sells to K-LOVE.

KDHX’s bylaws mandate a two-thirds vote from associate members to sell the broadcast license. KDHX leaders claimed a March 3 vote at a meeting of the board and undisclosed associate members approved the sale, but President Gary Pierson declined to share meeting minutes or vote details.

Gateway, based in Des Peres and Virginia, operates with a $9 million annual budget. K-LOVE runs one of the largest Christian radio networks in the U.S., offering uniform programming across its stations.