While the long-term fate of Mandatory Broadcasting, Inc., is yet to be determined, silence might soon greet local listeners when they tune into 107.9 FM - Stephenville and 98.5 FM - Ranger.
An agreement Tuesday between Kim Pack Wilson, attorney for plaintiff and shareholder Marion Cole, and Heath Allen, attorney for defendants and shareholders John and Pamela Hollinger, appointed Stephenville resident Perry Elliot as the receiver of the radio station’s assets and liabilities.
“We are pleased that the parties have been able to agree to the appointment of a receiver,” Wilson said. “While programming may go off the air temporarily, we are confident that the station will be purchased and revitalized to become an important community resource for entertainment, public service information and community events.”
Elliot has full control of the business, including hiring personnel and managing the money. The order also states that Elliot can liquidate all assets owned by the corporation and has 45 days to file an inventory of the property and all liabilities owed by Mandatory to financial institutions, creditors or taxing authorities.
The Hollingers were ordered to turn over all vehicles and assets owned by the corporation.
Allen said he has full confidence in the appointment of Elliot, and said control of the station no longer rests in the hands of the shareholders.
“Perry Elliot’s character is beyond reproach,” Allen said. “I can’t think of anyone better to serve as receiver in this case.”
Marion Cole’s late husband, Cleve, and the Hollingers entered into a business deal in March 2008 to purchase Ranger-based KCUB 98.5 FM. According to the Federal Communications Commission (FCC), Tony Heady, the station’s former sales manager, obtained the license for translator signal 107.9 FM, which rebroadcasts the station into the local market in late October of this year.
Cole lodged a civil lawsuit in October that alleged mismanagement on the part of the Hollingers and sought an injunction to stop Heady from transferring 107.9 to another station for rebroadcasting.