Decision
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Ottawa, 27 January 1984 |
Decision CRTC 84-46 |
Radio Chicoutimi Inc. |
Chicoutimi, Quebec - 831958400 |
Following a Public Hearing in Hull, Quebec on 15 November 1983, the Canadian Radio-television and Telecommunications Commission announces that it approves the application by Radio Chicoutimi Inc. for authority to acquire the assets of radio station CJMT Chicoutimi from Mr. Rosaire Boivin, in his capacity as agent for the trustees, General Trust of Canada and Caisse Desjardins de Financement de Chicoutimi; and for a broadcasting licence to continue the operation of that station. The Commission will issue a licence to Radio Chicoutimi Inc. expiring 31 December 1988, subject to the conditions of licence specified in the licence to be issued. |
In recent years CJMT has experienced serious financial problems which, for a period of time, resulted in the closing of the station. On 28 October 1982, the Federal Business Development Bank, as the secured creditor of C.J.M.T. Ltée, the licensee company, decided to realize the securities obtained under trust deeds and took possession of the licensee company's assets in accordance with those trust deeds. As agent for the creditors, Mr. Rosaire Boivin received temporary authority from the Commission to manage operations and to administer the assets of the station to ensure continuity of service until a potential buyer was found. After taking possession of the assets of C.J.M.T. Ltée, General Trust of Canada leased the assets of CJMT, with promise of sale, to Mr. Pierre Tremblay, a shareholder and director of the applicant company proposing to purchase the assets of CJMT. |
Based on the evidence submitted at the hearing, the Commission considers that the proposed transaction will benefit the community served by CJMT, and that the applicant has sufficient expertise and financial strength to ensure the viability of the station. |
Radio Chicoutimi Inc. will be owned by a group of shareholders from Chicoutimi and Mr. Pierre Tremblay will be the company's chief executive officer. The Commission considers that the experience and achievements of Mr. Tremblay, who has held administrative positions at CJMT for many years, provide guarantees of sound future management and a sensitivity to local and regional needs. |
The Commission acknowledges the efforts and measures taken and the results achieved during the past year to return the station to a sound financial position. The shareholders have invested $260,000 in the company and the station has an unused line of bank credit. The applicant indicated the station's revenues have shown encouraging growth recently, especially in local sales, and an operating profit may be reached during the 1983-1984 financial year. According to statements made at the hearing, "the company's financial health is excellent". |
The Commission also notes the productive approach to programming, evidenced by an increase in the number of locally-oriented special programs, and a more active participation by the station in the promotion of regional talent. In this regard, the Commission acknowledges the involvement of CJMT in the competition entitled "Jonquière en chansons", involving the participation of numerous author-composers and where the winners are given the opportunity to record a 45-rpm record produced by CJMT. The applicant stated that it will continue to participate in this event, for a three-year period. The Commission also notes that four journalists have been hired on a permanent basis for the coverage of local and regional news. |
The applicant indicated at the hearing that the station's music programming consists of approximately 60% current hits and 40% former hits. In accordance with the commitments in the Promise of Performance and statements at the hearing, the Commission reminds the licensee that it must comply fully with the Commission's guidelines which require French-language AM and FM stations to broadcast a minimum of 65% vocal music in the French language. With regard to the night-time program "Le Grand Express" the applicant should ensure that all necessary authorizations have been obtained. |
With respect to the legal proceedings in Superior Court concerning the assets of C.J.M.T. Ltée, referred to in Mr. Jean Aubin's intervention, the Commission considers that these proceedings are a matter to be dealt with between third parties and that they concern it only indirectly, insofar as a decision of the Court could result in Mr. Rosaire Boivin not having the power to transfer the assets of C.J.M.T. Ltée on behalf of the trustees. There is no Court order requiring the Commission to suspend its decision until the Court hands down a ruling. Therefore, under the circumstances, the Commission does not consider that the issue before the Court justifies the Commission withholding its decision. |
J.G. Patenaude Secretary General |
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