ARCHIVED - Broadcasting Decision CRTC 2002-155

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Broadcasting Decision CRTC 2002-155

Ottawa, 19 June 2002

Pellpropco Inc.
St. Catharines, Ontario

Application 2002-0151-7
Public Hearing at Gatineau, Quebec
6 May 2002

CHSC St. Catharines - Acquisition of assets

The application


The Commission received an application from Pellpropco Inc. for authority to acquire the assets of the radio programming undertaking CHSC St. Catharines from Coultis Broadcasting Limited, and for a broadcasting licence to continue the operation of this undertaking.


CHSC is presently under the temporary management authority of KPMG Inc., the receiver of Coultis Broadcasting Limited. In Extension of temporary management authority for CHSC St. Catharines, Broadcasting Decision CRTC 2002-112, 22 April 2002, the Commission extended KPMG Inc.'s temporary management authority to 31 August 2002.


Pellpropco Inc. is a corporation with share capital and is jointly owned by Mr. Fabrizio Pellegrino and Mr. Terrance Gertner. Each hold 50% of the common shares.


The applicant indicated that the price of the acquisition would be $725,000. The applicant did not propose any tangible benefits in connection with this transaction. The applicant stated that the proposed transaction would accomplish a significant intangible benefit in that it would enable CHSC to continue operations.



The Commission received one intervention from Mr. Michael Rossi who, among other things, questioned the applicant's ability to finance the transaction.


No reply was filed by the applicant.

The Commission's determination


The Commission has considered the intervener's concerns. Based on the evidence filed with the application, the Commission is satisfied that the applicant is able to provide the financing for this transaction.


The Commission notes that CHSC has been unprofitable over the past three years. Consistent with Commercial Radio Policy 1998, Public Notice CRTC 1998-41, 30 April 1998, the applicant is not required to submit specific tangible benefits for the proposed transaction.


The Commission agrees that the maintenance of CHSC as a viable, local radio service to St. Catharines is an important intangible benefit and finds that approval of this application is in the public interest.


Accordingly, the Commission approves the application by Pellpropco Inc. for authority to acquire the assets of CHSC and for a broadcasting licence to continue the operation of the station.

Issuance of the licence


Upon surrender of the current licence, the Commission will issue a licence to Pellpropco Inc., expiring 31 August 2003, the current licence expiry date. The licence will be subject to the conditions set out in New licence form for commercial radio stations, Public Notice CRTC 1999-137, 24 August 1999.

Employment equity


In accordance with Implementation of an employment equity policy, Public Notice CRTC 1992-59, 1 September 1992, the Commission encourages the licensee to consider employment equity issues in its hiring practices and in all other aspects of its management of human resources.

Secretary General

This decision is to be appended to each licence. It is available in alternative format upon request, and may also be examined at the following Internet site:

Date Modified: 2002-06-19

Date modified: