The $19 million sale of Haliburton Broadcasting Group, which owns the Moose FM radio stations, is not going forward.

Newfoundland Capital Corporation had offered to buy HBR’s 12 radio broadcasting licences, including the one for Haliburton, last July.

“While we view these radio stations as very attractive and assets we would like to own some time in the future, in light of the seriously deteriorating credit markets, we have decided it is not the appropriate time to increase the debt levels of the company,” Newfoundland Capital’s CEO Rob Steele said in a press release issued Monday afternoon.

The press release says the acquisition was subject to approval from the Canadian Radio-television and Telecommunications Commission; “however both parties have mutually agreed not to proceed with the application.”

Newfoundland Capital has 77 radio licences across Canada. The purchase of HBR was seen as an opening into the Ontario market.

In July, Steele said “This group of licences is the most significant geographical expansion for Newcap since 2002, and considerably expands our reach in Ontario. It meets all of our investment criteria and gives us a presence in growing markets. [We] look forward to enhancing our presence in these markets.”