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Potential Sale of Systems
6 Months Ended
Jun. 30, 2011
Potential Sale of Systems [Abstract]  
Potential Sale of Systems
(5) Potential Sale of Systems
On July 5, 2007, Northland Cable Properties Eight Limited Partnership executed a purchase and sale agreement (the “Agreement”) to sell the operating assets and franchise rights of its remaining cable systems serving the communities of Aliceville, Alabama and Swainsboro, Georgia to Green River Media and Communications, LLC (“Green River”), an unaffiliated third party. The transaction was expected to close by the end of March 2008. To secure their performance under the Agreement, Green River deposited $75,000 into escrow (the “Escrow Deposit”), which was intended to be credited to the purchase price at closing. Closing of this transaction would have resulted in the liquidation of the Partnership.
On March 31, 2008, the Partnership notified Green River of its termination of the Agreement. Green River disputed the right of the Partnership to terminate the Agreement. The parties reached a final settlement in the first quarter of 2011. As a result of the settlement, the Partnership received proceeds and accrued interest of $65,572 from the Escrow Deposit. The escrow proceeds were recorded as other income during the first quarter of 2011.
During the first quarter of 2011 the Partnership, with the assistance of an investment banking firm, commenced the process of soliciting bids for the operating assets and franchise rights of its cable systems from potential interested parties. Initial expressions of interest were received late in the second quarter and final offers were received at the end of June. The Partnership is in the process of negotiating a definitive asset purchase agreement. No assurance can be given that the Partnership will reach such definitive agreement and no reasonable estimate of the timing of any asset sales can be given at this time. If a definitive agreement is reached, any asset sales would be subject to approval by a majority vote of the limited partners.
Fees for legal and accounting activities in connection with the aforementioned purchase and sale transaction amounted to $595 and $427 for the three months ended June 30, 2011 and 2010, respectively, and have been expensed as incurred within interest income and other in the accompanying statements of operations.