WZAZ, 2 of owners file for Chapter 11 protection

Two of the principals of urban radio stations WZAZ-AM and FM have filed for reorganization of the business under Chapter 11 of the U.S. Bankruptcy Code to avoid losing the stations to foreclosure by an Atlanta bank.

Mark Picus, president and general manager, said Citizens & Southern National Bank, which loaned $1.85 million in August to Picus, Jeffrey Jones and William Sanders to purchase Green Cove Springs station WPDQ-FM -- now WZAZ-FM -- said the loan was in default after a quarterly loan payment in January was 15 days late.

Picus and Jones, both personally and as Picus Broadcasting Corp. Inc., filed under Chapter 11 for protection from creditors. Picus said Sanders, who is president of Atlanta-based Sanders and Co. and 49 percent owner of Picus Broadcasting, has resigned as an officer of Picus Broadcasting.

By filing for bankruptcy, both Picus' and Jones' shares...