EAST ST. LOUIS – Bob Romanik, grim reaper of radio, abandoned a bankruptcy petition that trapped Belleville lawyer Donald Samson in a fight he couldn’t win.
Bankruptcy judge Laura Grandy dismissed the petition on Dec. 11, after Samson pleaded for her to protect him from a judge in Washington.
Samson, as bankruptcy trustee for Romanik’s Entertainment Media Trust, found himself in control of Romanik’s broadcast licenses.
That meant the Federal Communications Commission would convert a hearing about Romanik into one about Samson.
Administrative law judge Jane Halprin plans to hold a hearing in October.
Grandy stated in her order dismissing the bankruptcy petition that all assets would immediately revert from Samson to Entertainment Media Trust by operation of law.
She told the clerk to attach the order to a communications commission application for transfer of control within 24 hours, to remove Samson as controlling party.
“It is further ordered that Donald M. Samson shall have no further right, obligation or duty to act on behalf of the debtor Entertainment Media Trust,” Grandy wrote.
Samson and the trust’s lawyer, Jerry Graham of O’Fallon, signed the order.
The communications commission opened its case on a complaint from St. Clair County board Chairman Mark Kern, who acted for himself and not as an official.
He claimed Romanik created the trust to conceal his control of the licenses, and that Romanik shouldn’t control them due to criminal convictions.
This Aug. 20, after Halprin set a hearing next July, the commission’s enforcement bureau served interrogatories on Entertainment Media Trust.
On Sept. 9, Kern requested documents from the trust.
On Sept. 11, Graham filed the bankruptcy petition.
Graham identified Belleville lawyer Dennis Watkins as trustee of the trust.
He didn’t declare current bankruptcy but anticipated it upon loss of the licenses.
Grandy appointed Samson as trustee, and Samson hired the trust’s Washington lawyers to represent him there.
He intervened in Halprin’s court and moved to stay the proceedings.
Halprin stayed discovery.
In bankruptcy court, Samson began planning an auction for the licenses.
U.S. attorney Steve Weinhoeft objected, claiming no one but the commission can transfer licenses.
He argued that an auction would prevent the commission from doing what Congress created it to do.
In Washington, on Nov. 14, Halprin lifted the stay of discovery but postponed the hearing to October.
She ordered responses to the discovery requests that triggered the bankruptcy, and she set deadlines through Dec. 6.
On Nov. 19, the Washington lawyers filed notice of withdrawal.
Halprin set a hearing about it Dec. 5, and ordered Dennis Watkins to appear.
He didn’t appear.
She extended the deadlines anyway, due to confusion over representation.
In bankruptcy court that day, Samson moved to stay the commission proceedings.
“Trustee just recently learned that he is being subject to discovery requests and potential for consequences for noncompliance in the debtor’s ongoing litigation with the Federal Communications Commission,” Samson wrote.
He asked for a hearing on Tuesday, Dec. 10, and Grandy granted it.
The commission’s enforcement chief, Rosemary Harold, filed an emergency motion to convene a conference in Washington on Monday, Dec. 9.
“The only basis the Chapter 7 trustee provided for seeking an automatic stay was to avoid the discovery obligations imposed by the presiding judge,” Harold wrote.
She declared herself ready to argue that the time was ripe to terminate the proceedings for failure to prosecute.
She wrote that if an applicant does not commit to participating in a proceeding and presenting evidence on designated issues, “there is no need for a hearing.”
The commission’s docket doesn’t show that Halprin held a hearing Dec. 9, but it shows she issued an icy order Dec. 10.
“The failure of Mr. Watkins to appear at the Dec. 5 conference and the ongoing silence of Entertainment Media Trust with respect to this matter provides justification for entry of a default judgment and termination of this hearing proceeding,” she wrote.
“Out of consideration for the listeners Entertainment Media Trust is obligated to serve, however, the presiding judge will afford Entertainment Media Trust an opportunity to forestall dismissal and demonstrate its intention to prosecute its case.”
She ordered Watkins to file an appearance in ten days, and wrote that she’d invite a termination motion if he doesn’t.
Grandy held a quick hearing that day and continued it for 48 hours.
In 24 hours, Samson and Graham cleared out of bankruptcy court.
The law office of Dennis Watkins, across from the courthouse’s northwest corner, showed signs of vacancy lately and lacked furniture as of Dec. 12.