Report No. MM-831            MASS MEDIA ACTION                 June 3, 1994


              FCC CONSENTS TO ASSIGN THE LICENSE OF KILU(FM),
                    PAAUILO, HI, SUBJECT TO CONDITIONS

     The Commission has granted, subject to conditions, the
application to assign the license of KILU(FM), Paauilo, HI, from
Wyman W.C. Lai to Charles R. Crawford, over the objections of
O.D.T. International.

     Station KILU(FM) was formerly licensed to Hamakua Broadcasting
Corporation, a company controlled by Paul Yang.  On December 16,
1991, Hamakua filed a pro forma application to assign the KILU
license to O.D.T. International, a corporation wholly owned by Paul
Yang.  Crawford, a creditor of Hamakua's, contested the application
and claimed that approval of the sale would enable Hamakua to
defraud its creditors.  While that application was pending,
Crawford instituted bankruptcy proceedings against Hamakua in
federal bankruptcy court in Hawaii.  The court appointed Lai
trustee and on August 14, 1992, an involuntary pro forma
application was filed to obtain Commission approval for this
appointment.

     The FCC's Mass Media Bureau granted Lai's application and
dismissed the application of ODT, holding that such action reached
a fair accommodation between the Court, who presided over
contractual matters, and the FCC, which has exclusive authority
over broadcast licensing.    

     In its application for review, ODT argued that: 1) the
Bankruptcy Court merely appointed a trustee, but did not dictate
that the Commission grant the trustee authority to control station
KILU; 2) there was at all times a relevant counterclaim against
Crawford stemming from his obligations to Hamakua; 3) the only
purpose of approving the assignment to a trustee in bankruptcy is
based on the theory that the bankrupt party is no longer
financially qualified to operate the station, but there is a proper
application to assign KILU's license to an "indisputably"
financially qualified entity, ODT, and only if that application was
denied was the trustee entitled to adjudication of its application.


                                  (over)




                                    -2-

     Denying review, the Commission said the Bureau properly took
into account the existence of the Bankruptcy Court order and
federal policies favoring protection of creditors in granting the
Lia application.  Additionally, the Commission held that the Bureau
properly dismissed the application to assign KILU to ODT.  In light
of the ongoing bankruptcy proceeding involving the assets of KILU,
the Commission does not believe the public interest would be served
by permitting a licensee in bankruptcy to assign its license for
nominal consideration to a new legal entity, nor does it believe
that such a position is contrary or inconsistent with the
regulatory interests of the Commission.  The Commission also
rejected ODT's contention that the pendency of a counterclaim by
Hamakua against Crawford should alter this decision.  The
Commission said the validity of that claim and its effect, if any,
on the bankruptcy proceeding are matters best resolved in other
fora.

     The Commission stated that it had examined the uncontested
voluntary application for assignment of KILU to Crawford, and found
Crawford to be fully qualified to be the licensee of KILU(FM).

     The Commission granted the assignment application subject to
the condition that the assignment will be consummated within 60
days of the date of the grant, and that the Commission will be
notified of such consummation within one day thereafter; that the
station will resume broadcasting within 60 days after consummation
of the grant of the assignment; and that the FCC will be notified
of the resumption of broadcasting within one day.

     Action by the Commission May 27, 1994, by Memorandum Opinion
and Order (FCC 94-130).  Chairman Hundt, Commissioners Quello and
Barrett with Commissioners Ness and Chong not participating.

                                   -FCC-

     News Media contact: Patricia A. Chew at (202) 632-5050.
     Mass Media Bureau contact: Michael F. Wagner at (202) 632-
3954.