Royce International saga, update

[davideduardo]

That may be so, but both you and @DrAkbar say this, implying Patrick had no choice. That doesn't seem like that could really be true, is it?

He had "no choice" as Crazy Ed tried to throw crowbars between the spokes at every opportunity. The legal issues were enormous and much had to do with protecting the licenses.

It sounds to me like Patrick liked the look of those fees and voluntarily accepted the job, right?

No, it initially looked like any other bankruptcy interim management / administration situation, but Crazy Ed is anything but ordinary.

Since as you say, Patrick is enormously experienced in the field, presumably he would have known all about Crazy Ed when he took on the case.

Nobody could see how much, how often and how destructively he would try to mangle any deal.

Assuming he agreed to take it on, and wasn't somehow forced by the court to do so, then I'm just saying it seems weird to characterize him as the victim if he understood the risks and decided they were worth the reward, which looks quite substantial.

The reward was minimal, as nearly all he was paid went to legal fees. I worked with another court appointed bankruptcy administrator elsewhere, and it went smoothly and the administrator took expenses and a small percentage of the eventual sale price with a minimum of $50,000.

 

[davideduardo]

How else was Eaton to pay for all those full page Broadcasting Mag ads that made him sound like a saint?

It was from what he saved not giving us toilet paper at the stations. Of course, occasionally we'd get a box of the stuff, requisitioned 3 months prior, and good for about 4 or 5 weeks. The requisition went to a company he owned, and it showed delivery of a 3 month supply, which was about 60% short.

If you got company health insurance, it was from a company he owned. If a staff member was diagnosed with a terminal illness, they were fired before hospitalization.

And if you were a seller and exceeded your quota by too much, you were fired and the clients became house accounts serviced by the manager who did not get a sales commission. So when a seller approached quota, they quit selling for the rest of the month. In Miami, some sellers would work about 5 or 6 days a month, and several had sailboats they played with in Biscayne Bay along with a case of beer or two.

 

[PTBoardOp94]

I should also add Receivers in a Chapter 11 case are definitely the exception to the rule. Usually, bankrupted companies remain under the control of incumbent ownership while the case is pending (known as Debtor-in-Possession).

The receivership was ordered by the trial court in a previous copyright royalties case. Mr. Stolz then sent his licensee corporations into bankruptcy in a bid to end the receivership, and get his stations back. It worked, briefly. But now the bankruptcy court has ordered a trustee to operate the stations.

Since as you say, Patrick is enormously experienced in the field, presumably he would have known all about Crazy Ed when he took on the case. Assuming he agreed to take it on, and wasn't somehow forced by the court to do so, then I'm just saying it seems weird to characterize him as the victim if he understood the risks and decided they were worth the reward, which looks quite substantial.

I'm sure Patrick was familiar with Stolz's history. I would also wager Patrick was not expecting Mr. Stolz to be as vexatious as he has proven to be. Regardless, he is only a "victim" if the funds he is owed don't get transferred.

 

[exdjted]

Since so many people are on here saying that Larry Patrick was somehow rewarded with exorbitant fees for acting as the trustee for this godawful mess, what would YOU have done the job for? IF you were qualified!

It's not just running a station. It's trying to undo 20 years of crap that Ed Stolz created, dealing with lawyers, creditors, the FCC, the courts, licensing organizations, power companies, landlords, tower owners, etc., etc.,, etc.. Not to mention having to deal with Ed Stolz breathing down your neck and dragging you and your reputation through the mud because you agreed to step in to try and shepherd this mess across the finish line so most people at least get SOMETHING rather than the NOTHING they were going to get from Stolz. All while trying to get these turd properties on-the-air and generating even $1 in revenue, which was $1 more than Stolz was capable of, apparently.

Larry Patrick is due his fees as well as the attorneys who worked with him. Every time a lawyer farts they get paid, so yes, the $1.7 million in legal fees might seem high, but that's the price for their expertise. Larry Patrick is a stand-up guy who did the job he was tasked with. Just for dealing with Ed Stolz's BS he should get a medal for not losing his mind with those shenanigans.

 

[nd2023]

What was the point of Ed Stolz even getting his stations back? He didn’t make money on them. They were silent longer than they were on air since he regained control.

 

[seattlesarchiebunker]

Ed doesn’t need the money…he’s got plenty from his years of owning KWOD/Sacramento during the heady alternative years of the 90’s, and selling the station to Entercom about 20 years ago.

The only reason he got the stations back was on a technicality. He decided the smartest thing to do was chapter 11 the holding companies…so they don’t have to pay back the original receiver fees/debts, and the courts put them back in receivership.

Once Ed passes on, I’d love to write a book on his growing lack of sanity and litigious attitude over the past 35 years. I have to say it would have to be when he passes, as you know countless legal documents would be generated and no publishing house wants to lawyer up to that.

 

[inari]

Once Ed passes on, I’d love to write a book on his growing lack of sanity and litigious attitude over the past 35 years. I have to say it would have to be when he passes, as you know countless legal documents would be generated and no publishing house wants to lawyer up to that.

I would love to read that.

A quick search shows he is 74 now, is that right?

 

[AmyMegan]

I should also add Receivers in a Chapter 11 case are definitely the exception to the rule. Usually, bankrupted companies remain under the control of incumbent ownership while the case is pending (known as Debtor-in-Possession).

They usually do but have to get court approval for just about everything. The case where I was a creditor the debtor was selling permits for 10 cents on the dollar and getting other misc fees such as his legal and broker fees paid to him directly. They didn't get court permission or even tell the courts they were selling off property. Or turn any of the funds in to the courts. Well 11 cents was turned in. So that lead to a liquidation. I think in the Stoltz case they couldn't come up with a plan to pay the creditors that was reasonable. Although they creditors on the Iheart bankruptcy got screwed but the plan was approved by the judge. In my case the debtors tried to remove property from the bankruptcy via another Federal court in a different state. This didn't work but could have if they weren't caught. There's a lot that can happen still in Stoltz case.

 

[MarkW]

That's a wild story, and you're right - the debtor actions you cited are definitely impermissible without an order from the Bankruptcy court. Disgorgement of the improperly conveyed assets from the possessor would be the remedy for the harmed creditors.

Depending on the exact circumstances in situations similar to the one you cited, civil contempt charges against the debtor and/or his/her attorney could even be on the table.

https://www.justice.gov/archive/ust/articles/docs/contempt.pdf

 

[nd2023]

Ed doesn’t need the money…he’s got plenty from his years of owning KWOD/Sacramento during the heady alternative years of the 90’s, and selling the station to Entercom about 20 years ago.

The only reason he got the stations back was on a technicality. He decided the smartest thing to do was chapter 11 the holding companies…so they don’t have to pay back the original receiver fees/debts, and the courts put them back in receivership.

Once Ed passes on, I’d love to write a book on his growing lack of sanity and litigious attitude over the past 35 years. I have to say it would have to be when he passes, as you know countless legal documents would be generated and no publishing house wants to lawyer up to that.

I have a feeling that he squandered the money he made in the 90s. Lawyers are not cheap and he had a lot of unsuccessful lawsuits. Why didn’t he simply settle with ASCAP and avoid the whole receivership and bankruptcy in the first place

 

[exdjted]

I have a feeling that he squandered the money he made in the 90s. Lawyers are not cheap and he had a lot of unsuccessful lawsuits. Why didn’t he simply settle with ASCAP and avoid the whole receivership and bankruptcy in the first place

Because that would require introspection and the ability to admit you were wrong and should do the right thing. Obviously things Ed Stolz lacks. As well as character, a backbone, etc., etc., etc...

 

[DrAkbar]

Poor Ed, he was born crazy.

Meanwhile, I wonder how much revenue that ABQ syndicator is billing on the quality Royce International properties?

 

[nd2023]

Poor Ed, he was born crazy.

Meanwhile, I wonder how much revenue that ABQ syndicator is billing on the quality Royce International properties?

It’s only on San Francisco. Palm Springs is an automated CHR format. Vegas is silent

 

[boiseengineer]

Radio Insight:
"Judge August Landis of the United States Bankruptcy Court District of Nevada approved on Thursday court-appointed trustee Michael Carmel’s plan to auction off the station assets of Ed Stolz’s Royce International Broadcasting."

Bankruptcy Judge Approves October Auction For Ed Stolz Stations - RadioInsight

Judge August Landis of the United States Bankruptcy Court District of Nevada approved on Thursday court-appointed trustee Michael Carmel's plan to auction off the station assets of Ed Stolz's Royce International Broadcasting. Any interested party must submit a bid by 5pm Pacific Time on Monday...

radioinsight.com

 

[inari]

Is there an itemized price list for the stalking horse bid? I imagine it's something like $2.5 million for KREV Alameda/SF; $0.75 million for KRCK+translators in Mecca/Palm Springs, and $1.25 million for KFRH Las Vegas.

Those prices are not too bad. The problem is once you win the station.... how many lawsuits is crazy Ed going to file against you?

 

[nd2023]

Is there an itemized price list for the stalking horse bid? I imagine it's something like $2.5 million for KREV Alameda/SF; $0.75 million for KRCK+translators in Mecca/Palm Springs, and $1.25 million for KFRH Las Vegas.

Those prices are not too bad. The problem is once you win the station.... how many lawsuits is crazy Ed going to file against you?

That is why I am hesitant to bid on KBET and K276GX

 

[DrAkbar]

The problem is once you win the station.... how many lawsuits is crazy Ed going to file against you?

But even before it gets to that point, Crazy Ed can outbid VCY and get the stations back. Then he can sell KREV for the overinflated price he thinks it's worth and divide his time between two desert cities.

 

[radiofan2023]

But even before it gets to that point, Crazy Ed can outbid VCY and get the stations back. Then he can sell KREV for the overinflated price he thinks it's worth and divide his time between two desert cities.

How can someone who is or was in bankruptcy outbid anyone?

 

[davideduardo]

How can someone who is or was in bankruptcy outbid anyone?

One of his companies is in bankruptcy. He, himself, is not.

 

[radiofan2023]

My mistake!