In a follow-up to this story, yesterday a federal bankruptcy judge ordered the Receiver Larry Patrick to immediately turn over Radio Stations KREV-FM, KRCK-FM and KFRH-FM to the control of the business entities owned by Ed Stolz. The proposed sale of the stations to nonprofit VCY America, once trumpeted as a "done deal," is now "dead in the water."
Undated photo - Ed Stolz (2nd from the right) partying with ZZ Top after the show.
In granting Stolz's motion for turnover, while denying numerous counter-motions brought by Patrick, Chief Judge of the Nevada Bankruptcy Court August B. Landis repeatedly noted that Stolz had satisfied the judgment in the original copyright case by paying a total of over $1.6 million, expressing consternation at the size of the Receiver's fees and attorney fees in comparison to the underlying judgment of $330,000.
Judge Landis found that allowing the stations to remain in Patrick's control would not serve the interest of the creditors, nor would it serve Stolz's interest, both of which factors were taken into account.
Patrick argued that he is better qualified than Stolz to operate the stations. Noting that the companies have reported $0 in revenue during the time under Patrick's control, Judge Landis stated that he found that argument "curious."
Stolz hopes that Patrick and VCY America will cooperate in a smooth and swift transition of operational control back to him. However, given the contentious nature of the dispute so far, that is far from certain.
Disclosure: I serve as a consultant to Mr. Stolz, and was present at the January 31, 2022 hearing before Judge Landis.
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