A battle between Christian radio behemoths may be underway in St. Louis.

Gateway Creative Broadcasting, which owns Christian AC “99.1 Joy-FM” KLJY and Christian Hip Hop “Boost 95.5” KXBS in the St. Louis market, has made a $5.5 million counter-bid to acquire 88.1 KDHX St. Louis.

Outbidding K-Love Inc’s $4.35 million purchase agreement for the station, STLPR reports that Gateway Creative Broadcasting will ask the bankruptcy judge overseeing the sale to set up a bidding process to determine a new owner for KDHX’s license before they were set to determine whether to approve K-Love’s acquisition on Thursday.

In its court filing, Gateway Creative Broadcasting says it had entered into a letter of intent with KDHX owner Double Helix Corporation last December including a $400,000 loan to the organization. Gateway says it was surprised to learn in January while it was continuing to negotiate the sale that KDHX had filed for Chapter 11 bankruptcy protection requesting to appoint K-Love Inc. as debtor-in-possession creditor that waived interest payments and other fees should the license be sold to them.

Gateway Creative Broadcasting’s “Boost” brand is heard on K-Love owned HD subchannels and translators in twelve markets including Chicago, Memphis, Minneapolis, Phoenix, Pittsburgh and Portland OR.

Update 4/1: The board of directors of Double Helix Corporation has announced it has agreed to sell the license of 88.1 KDHX St. Louis to K-Love Inc.

Expecting that the deal will take time to get through the bankruptcy court, the deal is structured to lower the amount K-Love will pay based on the time it takes to close. Should closing of the sale occur within six months of today, the purchase price will be $4.85 million. Between six and twelve months, the price drops to $4.6 million. Anything longer and K-Love Inc. will pay $4.35 million. Double Helix will retain KDHX’s office building. Additionally should the bankruptcy court require Double Helix to pursue alternate bids for the license, break-up provisions in the contract would require a break-up fee to K-Love of $350,000 plus expenses incurred in connection with the debtor-in-possession financing in an amount not to exceed $300,000 as well as a minimum overbid requirement of $650,000 over the purchase price by an alternate buyer. The alternative bids shall not be conditioned upon any due diligence, financing or other conditions and be no less favorable to the estate than the terms proposed by K-Love, be submitted no later than 21 days after the filing of the sale motion with an auction to be held no later than April 16 or such date ordered by the bankruptcy court, full opportunity for K-Love to raise its bid and include the break-up fee and DIP obligations as a credit bid.

Original Report 3/25:

Terms of the purchase were not disclosed, but the board states, “Careful thought was given to the decision to sell assets, and many factors were considered. Double Helix was able to negotiate an offer that exceeds expected market value at a time when the value of broadcast licenses is declining. By selling these assets now, Double Helix can save over $500,000 in needed broadcast infrastructure repairs and instead can redirect that money toward future projects. We are selling these assets when they can bring the most value to help us secure our future and achieve our mission.”

The deal follows the corporation filing for Chapter 11 bankruptcy protection with K-Love Inc. providing financing to continue operating through the bankruptcy process becoming one of the top priorities to recoup funds pending creditor and court approval. Instead the parties will now seek for K-Love Inc. to purchase the station immediately, with KDHX moving to a digital operation.

The Double Helix announcement continues, “We understand that this decision brings concerns and questions, and we want to assure our community that Double Helix’s future remains strong and community-driven. This sale is not the end of KDHX—it is a transformation that allows us to continue our mission in new and sustainable ways. While we don’t yet know all the ways we will do that, we look forward to a time of gathering input from volunteers, listeners, content creators, and industry leaders to help shape this future.”

“Double Helix’s future remains rooted in its commitment to independent, community-driven media. By securing financial independence, we are ensuring that the organization can continue to evolve, adapt, and serve its audience without the burden of financial instability. This transition enables us to reinvest in innovative programming, expand our digital presence, and create new opportunities for community engagement.”

“While the medium may change, our mission remains the same—to build community through media, driven by the voices, stories, and creativity of those we serve.”

INSTANT INSIGHT: As noted in the original report below, most of those owed money were not the volunteers that provided the programming for KDHX, but rather the board members. This was really the only outcome that would allow the board to recoup its money owed, while allowing K-Love to enter one of the few markets where it had yet to enter. Until the past few years, K-Love would avoid markets such as St. Louis where another strong local Christian AC station was firmly established, in this case Gateway Creative Broadcasting’s “99.1 Joy-FM” KLJY, but those days are long gone as it attempts to reach full national coverage for its flagship “K-Love” brand.

Original Report 3/13: After ending live programming and eliminating all of its volunteer content production roles at the end of January, Double Helix Corporation’s Variety 88.1 KDHX St. Louis has filed for Chapter 11 bankruptcy protection.

KDHX has been victim to a number of internal battles in recent years as volunteer hosts starting with station co-founder Tom Ray were cut from the station, which led to other hosts being dismissed or resigning in protest. That would lead to lawsuits seeking have board members removed for violating the organization’s bylaws leading to a temporary restraining order against the board. Prior to the bankruptcy filing, members of the group “LOVE for KDHX” pledged to give the station $100,000 if it agreed to a change in leadership. disclosed recent financial information and agreed not to sell KDHX’s broadcast license. Should the board agree meet to discuss the offer and their plan, an additional $100,000 would then be placed in escrow until the finalization of an agreement. The board of the station immediately rejected the offer stating, “Repeating the problems of the past — with some of the same actors who contributed to KDHX’s current financial situation — will do nothing to save KDHX.”

In filing for chapter 11 protection, KDHX stated that it had at least $1 million in financial liabilities with its largest debts to board member Mark Hamlin for a $120,000 construction loan, PR firm AHL Consulting, and multiple staff members including Executive Director Kelly Wells, who is owed $73,381. The twist in the filing is that K-Love Inc. will serve as principal creditor loaning KDHX the funds to continue operating through the bankruptcy process becoming one of the top priorities to recoup funds pending creditor and court approval.

INSTANT INSIGHT: The primary way to recoup funds for KDHX is to sell its assets and K-Love has just found its way to enter one of the largest markets it currently does not operate in. The volunteers expected the board to sell the license of KDHX and K-Love is now in place to do just that as it will now have a seat at the group’s restructuring table. Until the past few years, K-Love would avoid markets such as St. Louis where another strong local Christian AC station was firmly established, in this case Gateway Creative Broadcasting’s “99.1 Joy-FM” KLJY, but those days are long gone as it attempts to reach full national coverage for its flagship “K-Love” brand.