FCC to Drop Challenge to KMEX-TV, 5 Others

The Federal Communications Commission will drop its challenge to the licenses for Los Angeles television station KMEX-TV and five other Spanish-language outlets across the country in light of a decision by the broadcast companies to sell the stations, according to a preliminary agreement released Monday.

The accord would settle a dispute over the ownership of the stations and remove a major hurdle for the transfer of the broadcast licenses to new owners. The agreement, signed by the FCC’s mass media bureau, which handles television license applications and transfers, must be approved by the FCC’s review board or sent to the full commission for a decision.

Last January, a federal administrative law judge refused to renew the licenses for the stations on grounds that the family of Mexican television magnate Emilio Azcarraga had established an “abnormal relationship” with Spanish International Communications Corp., which owns KMEX. The judge said this relationship made the TV stations dependent on the influence and direction of SICC.

Under the pressure of that ruling, the stockholders of SICC agreed several weeks ago to sell KMEX along with the company’s other broadcast outlets, KFTV-TV in Fresno, WLTV-TV in Miami, WXTV-TV in Paterson, N.J., and KWEX-TV in San Antonio.

As part of the FCC agreement, Bahia de San Francisco Television, another company that shares some of the same stockholders, has agreed to sell KDTV-TV in San Francisco.

The Azcarraga family owns 20% of SICC, and Rene Anselmo, who stepped down recently as head of the corporation, owned 24% of the firm, as well as up to 45% of Bahia and another firm, Seven Hills Television Co. The agreement does not apply to the Seven Hills Television Co.

Bids for KMEX and the other four SICC stations, which could bring as much as $400 million, are due by June 30. Sources say as many as 10 bids are likely, including one group that reportedly has former U.S. Ambassador to Mexico John Gavin as one of its members.

Once the bids are reviewed, negotiations will begin in July between SICC and a selected number of finalists. “We would hope to see the sale completed by the end of 1986 or in early 1987,” said Ronald L. Fein, special counsel to SICC and its stockholders.

The FCC agreement provides SICC 60 days from the official June 20 signing to file an application with the commission to transfer the licenses to a new buyer.