Trustee Who Won Big Judgment Against Luken Asks Lifting Of Automatic Bankruptcy Stay

Friday, June 28, 2013

The Arkansas trustee who won a $47.4 million verdict against Chattanooga TV magnate Henry Luken is asking that the automatic stay of any proceedings against Luken Communications be lifted in Bankruptcy Court.

Randy Rice noted that a "barebones" bankruptcy was filed by Luken Communications electronically on Sunday - just two days after the verdict. He said it got in just ahead of the judge who presided over the Arkansas trial listing her findings of fact and final judgment in the case. He said she had planned to do so Monday or Tuesday.

With that judgment not yet of record, trustee Rice noted that the $47.4 million verdict was not listed among the top 20 Luken Communications creditor.

But he said the bankruptcy filing cited the verdict as the reason for bringing the action.

Trustee Rice said the verdict should be allowed consideration the in Luken Communications bankruptcy, saying it came after two and a half years of litigation.

He said the judge in the case had overruled numerous attempts to get the case thrown out.

The jury found that Mr. Luken was involved in a "fraudulent transfer" when he acquired the Retro Network from Equity Media for "the firesale price" of $18.5 million. Trustee Rice said that deal came one day after Mr. Luken stepped off the board of Equity Media, which later went bankrupt itself.

Trustee Rice said the Retro Network in January 2008 was valued at between $65.9 million and $155.6 million. He said in October 2006 it was valued at $80 million by the Holt firm.

He said the Luken payout was for approximately 23 percent of the value of RTN as determined by the valuation and approximately 12 percent of the high value of RTN.

He said RTN was designed to be a television network which would air “Prime Time all the Time”, airing round-the-clock programming, including long time classics and rarely seen older series, and would be similar to TV Land or Nickelodeon’s Nick at Night.





All School Board Members But Rhonda Thurman Approve Going Ahead With Equity Study

All County School Board members except Rhonda Thurman said Thursday afternoon they are in favor of pushing ahead with an equity study sought by new Supt. Bryan Johnson. Ms. Thurman said she was "tired of bullying tactics by outside groups" such as UnifiEd and Chattanooga 2.0. She said the 132 people who signed a letter in support of the study include people "with deep pockets" ... (click for more)

Upcoming City Council Agenda For Tuesday

Here is the upcoming City Council agenda for Tuesday: I. Call to Order. II. Pledge of Allegiance/Invocation (Vice-Chairman Oglesby). III. Minute Approval. IV. Special Presentation. V. Ordinances – Final Reading: (None) VI. Ordinances – First Reading: ECONOMIC AND COMMUNITY DEVELOPMENT a. An ordinance amending Chattanooga City Code, Part II, ... (click for more)

The Boss, Claude Ramsey

I try not to overuse the word great, but we lost a great man today, Claude Ramsey. I had the pleasure of serving under him as director of Commercial and Industrial Properties for 14 years while he was the Hamilton County Assessor of Property. He was probably the smartest person I have ever known. He was tough but patient, kind, caring and compassionate. He knew how to get ... (click for more)

Roy Exum: Saturday Funnies

You know that rattlesnakes, copperheads and water moccasins are deadly reptiles that we in the South must avoid at all costs but then again, snakes are part-and-parcel of the Sothern culture. Some years ago, before the Alabama football team was preparing to play Notre Dame, a Chicago sports writer asked a Crimson Tide player the bigger difference between the two college juggernauts ... (click for more)

Katie Burrows Sets UTC Women's Basketball Staff

Chattanooga head coach Katie Burrows is putting the finishing touches on her new staff. The faces will remain the same, but the responsibilities will shift.   Assistant coaches Brittany Johnson and Jon Goldberg will remain on the staff and Debbie Black moved from Director of Operations to assistant coach. Former student-athlete Aryanna Gilbert will be the Mocs' student ... (click for more)

CASL: Thursday's High-Point Scorers

CUMBERLAND HIGH-POINT SCORERS: None reported. RIDGESIDE HIGH-POINT SCORERS: 19 – Arianna Bond, Izzy Bauer, Drew Bond, Madeline Bond 17 – Beccan Fitzsimmons, Taj Goodman, Adelaide Bond, Jack Fitzsimmons 16 – Brynne Burkhart 15 – Alex Lowry 14 – Ryan Carpenter, Kathy Zeglen, Owen Eastman 13 – Asa Hedrick 12 – Erynn Whaley, Monica Suttles 11 – Wally ... (click for more)