From the story on KTVB’s website:
The FCC previously ruled that, while KNIN was losing money – it did not meet a specific accounting standard that involves how a station spends money on capital improvements for items like equipment.
KNIN and Journal argued that the capital expenses were actually for the continuation of “bare bones” operation of Channel 9, and only spent money on items essential to keeping the station on the air.
The FCC said that with the additional clarification, it finds that KNIN’s financial condition is “poor” and decided to issue the failing station waiver to allow the merger.
No word on when the transaction is expected to be complete.