HomeMy WebLinkAboutORD 72-40TH/im/8/21/72 0
ORDINANCE NO.
ENTITLED AN ORDINANCE GRANTING AUTHORITY TO GULF
AND WESTERN INDUSTRIES, INC. TO DISTRIBUTE CERTAIN
COMMON STOCK OF ATHENA COMMUNICATIONS CORPORATION
AND TO PLEDGE COMMON STOCK OF BEAUMONT CABLEVISION,
INC. TO CERTAIN BANKS, PURSUANT TO ORDINANCE NO.
69-41,_SECTION VIII(4).
WHEREAS, in accordance with Ordinance No. 69-41, Section
VIII(4), representatives of Athena Communications Corporation
submitted a formal request to the Beaumont City Council on June 19,
1972, the purpose of which was to seek approval from the City of
Beaumont for the distribution by Gulf and Western Industries, Inc.
of certain common stock of Athena Communications Corporation;
and also to pledge to certain banks all of the 'common stock of
Beaumont Cablevision, Inc., same being more particularly described
hereinafter; and,
WHEREAS, Mr. Al McKay,.representing Athena Communications
Corporation, appeared before the Beaumont City Council on July 20,
1972, and personally presented said request; after which, the
Beaumont City Council expressed an intention to grant said request;
and,
WHEREAS, the City Council is of the opinion that said
request should be granted;
NOW, THEREFORE, BE IT ORDAINED BY THE CITY OF
BEAUMONT, TEXAS:
That the Beaumont City Council, pursuant to Ordinance No.
69-41, Section VIII(4), does hereby approve the following described
request of Athena Communications Corporation:
"Approval is hereby respectfully requested
of the following:
(1) The distribution by Gulf + Western
Industries, Inc. as a dividend to its
common stock shareholders of approxi=
mately 80% of the common stock of
Athena Communications Corporation
('Athena'), the indirect owner of 81%
of the common stock of Beaumont Cable-
vision, Inc. ('Beaumont'), which will
1972.
result in a change in the right of
control of Beaumont of more than
30%; and
(2) A pledge to certain banks of all
of the common stock of Beaumont owned
directly or indirectly by Athena and,
if requested by the lenders, certain
assets of Beaumont to secure borrowings
under a revolving term loan agreement
of funds to be used primarily,for
construction of cable television
facilities."
PASSED by the City Council this ,� day of ,
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- Mayor -