When it comes to Ed Stolz, one thing’s for certain: nothing’s simple.
And, with respect to the ultimate transfer of control of three of his former FM radio stations, there’s a new rub in a saga that has entangled the court-appointed receiver of Stolz’s ex-properties and the non-profit broadcast ministry poised to assume ownership of the trio.
On March 15, RBR+TVBR reported that a conclusion to the ultimate loss of ownership of Class A KRCK-FM 97.7 in Palm Springs, Calif.; Class A KREV-FM 92.7 in Alameda, Calif., with coverage of the city of San Francisco and Oakland; and Class C KFRH-FM 104.3 in North Las Vegas, Nev., was one step closer to fruition.
A Local Programming and Marketing Agreement was signed Monday between court-appointed receiver Larry Patrick and VCY America Inc., the Wisconsin-based non-profit religious broadcaster.
This preceded paperwork filed at the FCC that would see VCY buy the stations for $6 million, with the proceeds going to the court to pay off Stolz’s creditors, both secured and unsecured. Patrick will get his cut. Then, whatever is left over — perhaps upward of $1 million — will go to Stolz.
Four months later, closing has yet to occur. Why? Patrick’s attorneys, Fred Heather and Rory Miller at Los Angeles-based Glaser Weil Fink Howard Avchen & Shapiro LLP, have notified Federal District Court Judge Jesus Bernal that Stolz owes an additional $2.5 million. And, he needs to pay up and all payments to the plaintiffs in WB Music Corp. v. Royce International Broadcasting Corp. satisfied before the transfer of control from Patrick to VCY can be completed.
The Glaser Weil attorneys on Friday (7/16) filed a hefty nearly 300-page document outlining Patrick’s accounting. Between receiver’s fees and expenses, unpaid judgements against Stolz, and creditor/vendor claims against Stolz, total debts of the receivership estate — Patrick — total $2,548,239.40.
Of particular note: some $400,240 and change in unpaid judgments against the Royce International owner.
“The Receiver respectfully requests that the Court order these debts satisfied prior to releasing any of defendants’ assets from receivership, and, further, that the Court set a date certain by which the entirety of these debts are either paid independently by defendants or the sale of the receivership assets to VCY America be concluded so that these debts may be paid out of the proceeds, with the balance returned to defendants,” the attorney write on behalf of Patrick.
Given Bernal’s ongoing frustrations with Royce, the request will likely be granted.
