When the Pacifica Board took out the loan for 3.265 million dollars, the Pacifica Foundation had already been designated in the 2015/2016 audit as having, “Substantial Doubt About the Organization’s Ability to Continue as A Going Concern”. They were almost 8 million dollars in debt. Their CFO, interim Executive Director and Pacifica Counsel all advised against taking out the loan, as well as the minority Members of the Board. The Board had no payback plan for it (and still doesn’t). It is a sub-prime (high) interest-only loan with all Pacifica’s assets collateralized. The balloon payment for 3.265 million dollars will be due in October of 2022. It is unclear how the Foundation will be able to meet the next quarterly interest payment of approximately $50,000+.
They have no way to repay the loan, which is due in October 2022. Draconian staff cuts have already been made at KPFK in Los Angeles. Other staff cuts are imminent, and services the stations depend on have not been paid in months.