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.





Wehunt Gets 160 Months In Federal Prison After Pleading Guilty In Connection With 2 Armed Robberies

Corey Wehunt was sentenced on Wednesday to serve 160 months in federal prison for carrying out the armed robbery of the Peoples Bank at Ducktown, as well as Pioneer Credit Jewelry in Cleveland. Prosecutors dismissed a third robbery count. Wehunt appeared before Judge Sandy Mattice. The judge sent Wehunt back to talk with his attorney at one point in the sentencing when he ... (click for more)

Police Charge Kim With Robbery At Marijuana Deal

Police have charged 19-year-old Caleb H. Kim in connection with a robbery during a marijuana transaction. Kim, of 1059 Stanley Ave., is charged with aggravated robbery. A 16-year-old said Kim pulled up next to his house on Pinewood Drive to sell him $20 worth of marijuana. He said when he got in the car that Kim said something to a female in the back. The 16-year-old said ... (click for more)

Is This Really About Slavery?

The greatest thing that came out of the American Civil War came after the cessation of hostilities. After four years of deadly, devastating, agonizing war and over 600,000 Americans had died, the armies came to a halt. The killing ended, but the suffering continued for many of the wounded and those whose homes and fortunes had gone up in smoke and been left as rubble. ... (click for more)

Roy Exum: Ordinary To Extraordinary

A handsome black guy, from the looks of it still in high school, appeared in a video during the A Celebration of Valor luncheon at the Chattanooga Convention Center Tuesday afternoon and described a Medal of Honor winner. Easily over 500 were there, including our famed Charles Coolidge, and all heard this young achiever say, “A Medal recipient is an ordinary person who performs ... (click for more)

Notre Dame Gets Revenge With Boyd-Buchanan

The Notre Dame volleyball team may have felt they let one get away in the championship match of the Hixson Invitational Saturday afternoon against the Boyd-Buchanan Lady Buccaneers, but they were bound to not let it happen again. At least, not during a home match against these same Lady Bucs Tuesday evening in the rowdy confines of their Jack Steiner Sr. Gymnasium. The Lady ... (click for more)

Wharton Named New UTC Athletic Director

University of Tennessee at Chattanooga Chancellor Dr. Steven Angle announced Mark Wharton as the Mocs' new Vice Chancellor and Director of Athletics today.  A press conference introducing Wharton is scheduled for Wednesday, Aug. 23 , at 2:00 p.m. (E.D.T.) in the Chattanooga Room in the University Center.  Community members, fans and supporters are invited to the ... (click for more)