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rationj? performance of the franchise must be secured by <br />guarantees of the parent corporation "in form and substance <br />acceptable to cityr In, this icasel,r North Central <br />states, that the original grantee,, Giroup W' Cable of the North <br />Sup burbsir Inc .910, will remain in place, as a subsidi-ary <br />coroirlate enti'ty of a pa rent co�orat ion , Noirth Central. <br />The, question bef'olre the Commission and the cities is <br />whether North Central. ls, guarantee of -the performance of the <br />11 it to <br />franchise is acceptable in form and substance . If not <br />acceptable, the offering of an unaicceptable, guarantee would <br />be a violation of' the franchise and more probably than not <br />wDual d be a reasonable basis four the w'3*.thholdl*ng of approval <br />of the transfer. If not the, Commission and cities must de- <br />c "de whether the guarantee of either Hauser or Continental <br />or both would be acceptable,. The, question of the guarantee <br />is rell,ated to the amount of ague tyr the, negative cash f <br />in the first, five years indentified for not only your <br />system, but also for the neighboring Group W systems and, the <br />fact, that the assets of the other sysitem,s, are pledged as <br />secur t <br />I y to the B'ank of Boston Mr Cia t t oo r s report <br />addresse these, factors more specifical.1y. North Central <br />has stated that Hauser and Continental are reluctant to <br />guy rue the franchise based upon cl n industry practice <br />and the reluctance to show the guarantee as a liabl"lity on <br />the corporate books. The Commission should consider these <br />arguments "in light of the perceived need, for the guarantee,., <br />