The Ed Stolz Saga continues, as Royce International Broadcasting has assumed control of KREV/San Francisco, KFRH/Las Vegas and KRCK/Palm Springs, Calif.
And, the three stations are now silent, RBR+TVBR has learned, putting an LMA of the stations by VCY America on ice — at least for now.
According to Larry Patrick, the court-appointed receiver who was directed by a California federal district judge to move forward with the sale of three three FM radio stations but was then thwarted by a Nevada U.S. bankruptcy judge, the dead air across the facilities could go on for days, or weeks.
Behind the scenes, Patrick tells RBR+TVBR, several filings are set for submission to the bankruptcy court that ordered Patrick to negate the $6 million sale of KREV, KFRH and KRCK to broadcast ministry VCY America. These filings are said to include a creditor’s plan of reorganization that would allow for the sale of the stations — on Stolz’s terms.
Could VCY America end up with the stations after all? It’s quite possible, albeit at perhaps a different price. Then, there’s the very real chance that another suitor could emerge and offer more for the trio of FMs.
Then came Stolz’s bankruptcy filing, in a Nevada court. As RBR+TVBR reported earlier in February, August B. Landis of the U.S. Bankruptcy Court for the District of Nevada — in an oral ruling made on January 31 — paved the way for Stolz to regain ownership of the properties. In Landis’ view, this was necessary in order to determine the total monetary value of all of his assets, so he could successfully emerged from bankruptcy.
For VCY America, it puts the kibosh on a March 15, 2021 agreement to acquire KREV, KRCK and KFRH — a deal the FCC refused to approve. Meanwhile, in another twist tied to the placement of the stations under a receivership led by Patrick, ASCAP and those owned unpaid music royalty fees from Royce International have received their money in full. Stripping Royce of his ownership of the stations was expressly tied to the need for those parties to be paid through a portion of the proceeds of their sale to VCY America.
With KREV, KRCK and KFRH’s future again hazy, Stolz reportedly still has outstanding debt of $1.089 million that must be dealt with; it is unclear if these are unsecured debts that a bankruptcy would reduce or negate in a settlement.
Then, there is an outstanding judgment against Stolz in San Francisco regarding a broken transmitter lease.
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