RECEIVERSHIP: Legacy Media, Tri-State Media, Radio 940, Radio 1400, Radio 1440, Radio 1470, Radio 1490
WAYNE KLEIN, RECEIVER FOR
Legacy Media, Tri-State Media, Radio 940, Radio 1400, Radio 1440, Radio 1470, Radio 1490
PO Box 1836, Salt Lake City, Utah 84110
Updates: Descriptions of Recent Developments
May 4, 2012: The Court today entered an order approving procedures to be used by the Receiver in soliciting bids for the six radio stations. The Receiver will be working closely with the bankruptcy trustee in Denver and will seek final approval by the bankruptcy court and the receivership court before final transfer of the assets.
April 16, 2012: The Receiver today filed a motion asking the Court for permission to conduct a no-reserve auction to sell the radio stations and assets. The motion is supported by the bankruptcy trustee for US Capital, Inc., the creditor in this case. The Receiver and Trustee will work together to select an auctioneer, sell the assets, and distribute the net proceeds.
January 19, 2012: The Receiver was informed that US Capital, Inc., the creditor in the Receivership, was placed into involuntary bankruptcy in Colorado. The bankruptcy court appointed a bankruptcy Trustee.
09/25/09 STATEMENT FROM THE RECEIVER
On September 25, 2009, Wayne Klein was appointed as Substitute Receiver for:
- Legacy Media Corporation
- Tri-State Media Corp.
- AM Radio 1400, Inc. (KENT)
- AM Radio 1440, Inc. (KPTO).
- AM Radio 1470, Inc. (KNFL).
- AM Radio 1490, Inc. (KOGN)
On January 7, 2010, the Receivership Order was amended to include Radio 940, LLC (KOBY) in the Receivership. The appointment of a Receiver was made by Utah Fifth District Eric A. Ludlow in connection with litigation filed against these companies and their owner. The Receiver is providing the following information that may be helpful to creditors regarding the Receivership:
What is a Receiver? A Receiver is a person appointed by a court to take control of companies or assets. This prevents any dissipation or misuse of the assets and begins the process that hopefully will lead to recovering money that can be used to pay investors or creditors. As the Receiver, I am an officer of the court. I do not work for any of the parties in the lawsuits that have been filed. It is my duty to gather and protect the assets of these companies. I am experienced in analyzing financial matters, having served as Director of the Utah Division of Securities, Chief of the Utah Attorney General’s Commercial Enforcement Division, and Chief of the Idaho Securities Bureau.
What will the Receiver do now? The immediate tasks for the Receiver are: 1) locating the assets and records of the companies and transferring them to my control, 2) conducting an analysis of the company’s operations to determine where the funds were expended, 3) recovering any deposits in bank accounts, 4) taking steps to protect the assets of the entities, 5) identifying what claims might be made by creditors against the Receivership Entities, 6) selling any assets of the company, and 7) recommending to the Court a plan to distribute funds the Receiver is able to recover. The Receiver expects to be able to take advantage of work already done by the initial receiver in gathering and analyzing information.
How can I keep informed about what the Receiver is doing? The Receiver must file regular progress reports with the court. Those reports are public information and will be shared with creditors. The Receiver will post these reports, copies of court filings, and other information about the receivership on its web site: http://www.kleinutah.com. Creditors may check the web site for updated information.
PO Box 1836
Salt Lake City, UT 84110
Telephone: (801) 824-9616
07.08.2010 Order Asset Sale Approval
06.02.10 Third Report to the Court and Motion To Approve Sale Of Assets
04.08.10 Order Approving Sale of Receivership Assets
03.18.10 Court Motion For Approval Of Sale
01.31.10 Second Report To The Court
01.07.10 Order Expanding Receivership
11.18.09 FCC Orders Transferring Control
11.18.09 Letter To Legacy Media Creditors
10.31.09 Initial Report To The Court
09.25.09 Appointment Order Substitute Receiver
05.29.09 Appointment Order Initial Receiver