Radio station owner sues hedge fund partner

By Kris Hundley, Times Staff Writer
Posted: Apr 30, 2008 07:07 PM

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The owner of nine radio stations, including WTMP-AM and FM in Tampa, has sued its largest creditor after a failed restructuring effort. Tama Broadcasting of Tampa sued D.B. Zwirn Special Opportunities Fund, a multibillion-dollar hedge fund based in New York, accusing the fund of illegally trying to sell Tama's assets and other deceptive practices. The lawsuit, filed in federal court in Jacksonville, alleges that after Tama leased its stations to Zwirn, the fund began firing employees and changing formats without Tama's consent. Tama is the sixth-largest U.S. black-owned broadcasting group, with other radio stations in Jacksonville and Savannah, Ga. Zwirn lent Tama $16.5-million in 2004 to finance growth; Zwirn claims Tama now owes nearly $40-million, a claim the broadcaster denies.