Judge confirms sale of Lowell Register’s radio stations to owner of The Creek

A Bibb County Superior Court judge has approved the sale of Radio Peach and Radio Perry to Creek Media, the owner of Macon’s new The Creek 100.9 radio station.

The radio companies, subsidiaries of Register Communications, have been held in a court-ordered receivership since early 2015 and were sold by a court-appointed attorney.

Lowell Register has argued his company, Register Communications, and its subsidiaries were placed in receivership improperly, but after a hearing last week, Judge Ed Ennis ruled to keep the receivership in place.

Register’s attorney, Thomas James, has maintained Green Bull Georgia Partners LLC — a company that owns loans Register Communications reportedly has failed to pay — used a power of attorney to consent to the receivership on Register Communications’ behalf and the radio stations’ parent company didn’t consent.

At the time the receivership was created, Register Communications purportedly had failed to pay about $7.5 million in loans, property taxes and payroll taxes owed to the IRS.

In a hearing last week, Stuart Walker, an attorney representing Green Bull Georgia Partners, said a federal bankruptcy judge has determined Register Communications owes his client more than $8.5 million, not including interest.

The radio stations, and Register’s TV station, WPGA-TV, are collateral for the debt, Walker said.

“By Mr. Register’s own admission, he’s broke. He has no resources, no access to resources to pay it,” he said.

Had Ennis granted Register’s motion to end the receivership, the veteran broadcaster would have regained control of the companies and possibly blocked the sale. James sought reconsideration on the matter, but Ennis issued an order denying the request Wednesday.

Testifying at a Monday hearing, Register said the $850,000 Creek Media is set to pay for the radio stations and associated property is too low.

He estimated the three radio stations to be worth more than $1.5 million and his TV and radio operations combined to be worth as much as $15 million.

Register said offers to buy the TV and radio operations together, which he said would garner a higher price, fell through in recent years because purchasers couldn’t get financing.

Ivy Cadle, an attorney representing the receiver, said the purchasing deal struck with Wesley Griffith and Creek Media was fairly negotiated and equitable.

James questioned the ethics of a Green Bull Georgia Partners managing partner, Steve Latkovik, who also works as an investment banker and helped negotiate the sale on the receiver’s behalf. He also said there hasn’t been an appraisal for the property.

In his order, Ennis wrote that there’s reason to believe the interests of Green Bull Georgia Partners and the receiver were “pretty much aligned” as both sought to maximize the sale price of the collateral.

He ruled there’s not enough evidence to support a finding that the sale was fraudulent and that the sale was for the best possible price.

Latkovik testified another purchase offer for the radio stations from another buyer for $400,000 was rejected.

He testified Monday that he estimated the value of the stations and associated property to be about $1 million. Much of the equipment is outdated and there’s a lot of maintenance that’s been deferred.

Griffith testified “there was a great deal of expense getting things up to standard” when he and his company, Creek Media, began broadcasting The Creek 100.9 on July 8. Creek Media operated the radio station under a local management agreement while the sale was pending.

In making his ruling, Ennis wrote that the sale was a culmination of many months of negotiations and “it is difficult to assess” Register’s testimony about the stations’ financial performance prior to the receivership as “anything other than self-serving.”

When asked the identity of the prior potential buyers for the stations, Register couldn’t provide the names of the buyers or when the offers were made.

His testimony that the value of a lease for space on one of the towers producing $54,000 a year in revenue being worth $1 million “is patently unreasonable,” the judge wrote.

Contacted by phone Wednesday, Register said he was in a meeting and didn’t comment on the judge’s ruling. Attempts to reach his attorney weren’t successful.

James has said Register may file a lawsuit against Green Bull Georgia Partners for an alleged breach of their fiduciary duties.

Other cases involving Register Communications still are pending in federal bankruptcy court, Bibb County Superior Court and the Georgia Supreme Court.

This story was originally published October 12, 2016 at 11:25 AM with the headline "Judge confirms sale of Lowell Register’s radio stations to owner of The Creek."