Bankruptcy judge orders stations back to Ed Stolz
A federal bankruptcy judge ordered Receiver Larry Patrick to turn over 92.7 KREV Alameda/San Francisco, 97.7 KRCK-FM Mecca/Palm Springs, and 104.3 KFRH North Las Vegas to companies controlled by Royce International Broadcasting of Ed Stolz.
California U.S. District Judge Jesus G. Bernal ordered Patrick’s appointment as receiver of the three former CHRs on July 6, 2020, authorizing him to solicit offers to sell the stations and manage the licenses in the interim. A $6 million sale to Christian operator VCY America closed in December 2020, with the network launching its programming on all three stations last spring. While Bernal considered the matter closed pending FCC approval of the sale following multiple appeal losses by Stolz, Stolz filed for Chapter 11 bankruptcy in October 2021.
On January 31, an emergency joint motion was granted by Judge August Landis of the United States Bankruptcy Court District of Nevada under 11 USC Â§ 543(a) stating that Patrick “will not disburse nor take any action in the administration of Debtors’ property, proceeds, proceeds, offspring, rents or profits of such property, or property of Debtors’ Bankruptcy Estate, in possession, custody or control of the Receiver, except such steps as are necessary to preserve such property.For clarity, for the avoidance of doubt, and without limitation, Receiver shall not take any action for the purpose of alienating or selling any or all of the Licenses of radio broadcast issued to one of the Debtors by the Federal Communications Commission” and that under 11 USC Â§ 543(b)(1) “The Receiver shall deliver to the Debtors, through their Managing Member Edward R. Stolz, any property of debtors held by or transferred Ã© to the receiver, or the proceeds, proceeds, rents of offspring or profits of such property, which was in the possession, custody or control of the receiver on or after November 9, 2021â.
Patrick is also ordered to file an account of his operation of the stations since his appointment as receiver on April 8.
In the bankruptcy cost filing, Stolz’s companies claimed he owed Patrick $590,340 for receiver and attorney fees and unspecified amounts to other attorneys, VCY America, as well as Crown. Castle for the disputed leases of the issuer’s site.