A Federal Bankruptcy Judge has ordered receiver Larry Patrick to turn 92.7 KREV Alameda/San Francisco, 97.7 KRCK-FM Mecca/Palm Springs and 104.3 KFRH North Las Vegas back over to companies controlled by Ed Stolz’s Royce International Broadcasting.
California U.S. District Judge Jesus G. Bernal ordered the appointment of Patrick as receiver for 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 was agreed to in December 2020 with the network launching its programming on the three stations last spring. While Bernal considered the case closed pending approval of the sale by the FCC following multiple appeals court losses by Stolz, Stolz filed for Chapter 11 bankruptcy protection 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 U.S.C. § 543(a) stating that Patrick “shall not make any disbursement from, or take any action in the administration of property of the Debtors, proceeds, product, offspring, rents, or profits of such property, or property of the Debtors’ bankruptcy estate, in Receiver’s possession, custody, or control, except such action as is necessary to preserve such property. For clarity, avoidance of any doubt, and without limitation, Receiver shall not take any action in an effort to alienate or sell any or all of the radio broadcast licenses issued to any of the Debtors by the Federal Communications Commission” and that under 11 U.S.C. § 543(b)(1) “Receiver shall deliver to Debtors, through their managing member Edward R. Stolz, any property of the Debtors held by or transferred to Receiver, or proceeds, product, offspring rents, or profits of such property, that was in Receiver’s possession, custody, or control on or after November 9, 2021”.
Patrick is also ordered to file an accounting of his operation of the stations since being appointed as receiver by April 8.
In the bankrupcty filing, Stolz’s companies claimed he owed $590,340 to Patrick for receiver and attorney fees and unspecified amounts to other lawyers, VCY America, as well as Crown Castle for disputed transmitter site leases.
This story first appeared on radioinsight.com