Wednesday, June 11, 2025

St. Louis Radio: Bankruptcy Judge OKs KDHX Sale To Gateway


U.S. Bankruptcy Court Judge Kathy Surratt-States has approved the sale of St. Louis community radio station KDHX’s broadcast license, tower, and other assets for $8.75 million to Gateway Creative Broadcasting, an Evangelical Christian nonprofit that operates JOY FM 99.1 and BOOST Radio in St. Louis. 

The decision followed an eight-hour hearing in the U.S. Bankruptcy Court for the Eastern District of Missouri, marking a pivotal moment in the station’s ongoing bankruptcy proceedings initiated by its parent company, Double Helix Corporation, in March 2025 due to a $2 million debt.

The sale came after Gateway outbid the Tennessee-based Christian network K-LOVE, which offered $8.5 million in a May 31, 2025, auction. KDHX, a 38-year-old station known for its eclectic, volunteer-driven programming, faced financial turmoil following the controversial 2023 dismissal of longtime DJs, including co-founder Tom “Papa” Ray, and the subsequent loss of listener donations. This led to the cessation of live broadcasts in February 2025.

Despite opposition from the League of Volunteer Enthusiasts (LOVE) of KDHX, a coalition of former DJs, volunteers, and community supporters, Judge Surratt-States rejected their request for a 90-day delay to propose a reorganization plan to keep KDHX on the FM dial. The coalition, which raised $550,000, argued the sale violated KDHX’s nonprofit mission and Missouri law, citing alleged board misconduct, including bypassing bylaws requiring a two-thirds vote from associate members.

The approved sale allows KDHX to continue as a digital station on an HD-2 subchannel provided by Gateway and online streaming, with approximately $6 million remaining after paying creditors to sustain operations for several years. However, critics noted that only 1.2% of radio listeners own HD radios, limiting the station’s reach. The sale still requires Federal Communications Commission (FCC) approval, a process that could take months, during which KDHX must continue broadcasting. Community members, including former volunteers, expressed dismay, with sentiments on X describing the sale as a “theft of public culture.” An appeal is possible but would be costly and complex.

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