The order to return the stations to Stolz has now been made public.
-
Get involved.
We want your input!
Apply for Membership and join the conversations about everything related to broadcasting.
After we receive your registration, a moderator will review it. After your registration is approved, you will be permitted to post.
If you use a disposable or false email address, your registration will be rejected.
After your membership is approved, please take a minute to tell us a little bit about yourself.
https://www.radiodiscussions.com/forums/introduce-yourself.1088/
Thanks in advance and have fun!
RadioDiscussions Administrators
92.7 Rev
- Thread starter sfradio
- Start date
Unbelievable...Ed Stolz is back in the radio business! What happens to VCY now?
So I guess he'll use the bankruptcy to avoid paying Patrick. And VCY sues Patrick for fraud.
On what grounds would VCY sue Patrick? He did what he was legally obligated to by the court. Considering Stolz kept a legal battle against Entercom going for over two decades because he had seller's remorse, everyone knew what they were getting themselves into here.
This battle is far from over. Stolz claims that the three stations are worth $30 million based on one broker's statement from pre-pandemic valuations mostly attained from Bonneville's acquisition of the spinoffs in Sacramento and San Francisco from the Entercom/CBS Radio merger. VCY was going to pay $6 million. It is highly doubtful anyone is going to pay $30 million for those three in 2022 dollars, but can Stolz get more than $6 million. It is possible, but most buyers will be wary of doing business with him due to the knowledge that this legal battle and his history will keep potential bidders from wanting to get in bed with him.
Somebody got hosed here. Take your pick of who. VCY bought something, paid for it, and never actually got the license. So to me, that's fraud. One can argue extenuating circumstances, but at the end of the day, VCY signed a contract and got nothing. That sounds like a lawsuit.
Unless there's a disclaimer in the contract that it's all contingent on this, that, and the other. The FCC never actually weighed in.
The sale was never approved by the FCC nor consummated. They will always acquiesce to a federal court to weigh in before proceeding.
Nobody got hosed. They all knew what they were dealing with in this circumstance going into the deal.
I agree completely with Lance.
Bottom line is the FCC approval of the sale did not occur prior to Stolz filing for bankruptcy protection. Evidently, the purchase and sale agreement between the Receiver and VCY was signed within the bankruptcy estate preference period (i.e. clawback) window.
Unless the purchase and sale agreement contained representations that were knowingly wrong at the time they were entered, no fraud occurred.
Now, there may be warranty provisions built into the PSA that protect VCY for instances where the Receiver is ultimately unable to convey the FCC license and the other radio station assets due to circumstances beyond his control. If one of those warranty conditions is triggered, the agreement may provide for certain damages to be paid to VCY. For the situation at hand, those damages might entitle VCY to partial or full refund of previously paid LMA fees, return of any deposit (if applicable), and perhaps reimbursement of out of pocket expenses. I list those things only as an illustrative example. I have not reviewed the agreement previously entered between the Receiver and VCY.
Bottom line is the FCC approval of the sale did not occur prior to Stolz filing for bankruptcy protection. Evidently, the purchase and sale agreement between the Receiver and VCY was signed within the bankruptcy estate preference period (i.e. clawback) window.
Unless the purchase and sale agreement contained representations that were knowingly wrong at the time they were entered, no fraud occurred.
Now, there may be warranty provisions built into the PSA that protect VCY for instances where the Receiver is ultimately unable to convey the FCC license and the other radio station assets due to circumstances beyond his control. If one of those warranty conditions is triggered, the agreement may provide for certain damages to be paid to VCY. For the situation at hand, those damages might entitle VCY to partial or full refund of previously paid LMA fees, return of any deposit (if applicable), and perhaps reimbursement of out of pocket expenses. I list those things only as an illustrative example. I have not reviewed the agreement previously entered between the Receiver and VCY.
Last edited:
Me either. At the time of the sale, we all commented on the low price. So perhaps the volatility of the situation explains the price, and the buyer knew the sale might get overturned. Which also explains why VCY did little with the stations during their LMA. All I know is that nobody should be counting on getting money from Stolz.
No, the fact that the licenses were tied up in the receivership proceedings and then bankruptcy does not explain VCY's programming decisions. VCY's overall strategy explains that. They air satellite religion. That's all. No local ministries, no community outreach, no "855-FOR-TRUTH" billboards.
Stolz is the sole shareholder in Royce which is the sole shareholder in all three license holding companies. In terms of the story use of Stolz was done interchangeably for people to follow. Story says at start Stolz' Royce International Broadcasting.
Crazy Ed loves to litigate, and this time it paid off big for Royce International (which he owns 100%). But the judge wants a full accounting of who is owed what, and this means more litigation as Stolz will undoubtedly challenge every nickel and dime submitted. The ruling is a victory for him, but his track record as a broadcaster remains questionable.
But if you look through this thread, the station was quite often off the air. Or with carrier on and no programming. They were supposedly paying the receiver for an LMA, but didn't actually feed their satellite programming to the station.
Have the properties been turned back over to Stolz yet? What is airing on those stations now?
Regardless of Ed's business practices, he's getting his stations back. Either he's a better lawyer than many thought or magic is afoot. 🤪
The man is a pox on radio and a disease that just want go away. He might be getting his stations back, legally.. but in no way does he deserve them
It is still VCY.
Assuming Stoltz gets back in the game, what do you think he will do with them? Will he bring back CHR or go in a different direction?
- Status