Following a joint petition filed by US Trustee Tracy Hope Davis on behalf of multiple creditors including former court ordered receiver Larry Patrick, VCY America, Crown Castle, Bellaire Tower Homeowners Association, and C & E Haas Development Company, the United States Bankruptcy Court District of Nevada has ordered the appointment of a trustee to oversee all of the radio properties owned by Ed Stolz.
Judge August Landis ordered 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 Stolz’s Royce International Broadcasting in January 2022 following Stolz’ filing of Chapter 11 bankruptcy protection in 2021 to prevent Patrick as court-ordered receiver from closing on the $6 million sale of the three stations to VCY America to pay off debts from the lawsuit brought on by ASCAP and sixteen other music copyright holders.
In the request filed by the court, Stolz asserted that Silver State Broadcasting consisting of 104.3 KFRH and Conservative Talk 790 KBET Winchester/103.1 K276GX Las Vegas had a combined estimated value of $20 million with claims against Patrick valued around $12 million and unsecured claims of $1,624,665 for legal fees, lease payments, receiver fees, pending litigation, and utilities. Golden State Broadcasting’s 92.7 KREV is claimed to have a license valued at $15 million plus claims against Patrick for $12 million with unsecured claims totaling $934,324. Major Market Radio LLC, licensee of 97.7 KRCK-FM Mecca/Palm Springs and translators 95.5 K23AK and 98.1 K251BX Palm Desert were claimed to have a value of $5 million plus claims against Patrick and Dariush G. Adli valued around $12 million, but owing unsecured claims of $590,340 for legal fees, lease payments, and receiver fees.
Stolz was due to submit a Chapter 11 restructuring plan on February 16, 2022. Following a motion for extension, a plan was filed on May 2 and later amended twice but has yet to be confirmed by the court. Stolz’s bankruptcy attorney filed a motion to withdraw because of serious illness on November 23, 2022 and has yet to procure a replacement as required.
The motion to appoint the trustee notes that Stolz failed to confirm a plan or otherwise prosecute the cases by filing a motion to sell or a bidding procedures motion with respect to the assets while showing minimal net cash flow and repeatedly failed to comply with the administrative requirements including the filing or timely filing of monthly operating reports, payment of trustee fees, or providing evidence of insurance.
Judge Landis did reject the trustee’s request to convert the bankruptcy process to a Chapter 7 liquidation.
104.3 KFRH is currently simulcasting KBET’s Conservative Talk “Talk Now” programming. 97.7 KRCK had returned to its former CHR “Hot Hits 97.7” format with its translators simulcasting KBET via KRCK-HD2. 92.7 KREV resumed operations in November 2022 as Dance “Pirate Radio 92.7” running programming originating from Don Davis’ cluster in Albuquerque NM.
