EMT Opposes Own Bankruptcy, ALJ Proceeding on Hold
Entertainment Media Trust’s administrative law judge proceeding is on hold while the broadcaster battles its own bankruptcy trustee in U.S. Bankruptcy court over how the case should proceed, according to filings (here and here) in docket 19-156 (see 1910020037). EMT…
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filed for Chapter 7 and now seeks to have the bankruptcy proceeding voluntarily dismissed, a request that the FCC Enforcement Bureau -- EMT’s opponent in the ALJ proceeding -- seconded. Chapter 7 bankruptcy trustee Donald Samson, who's now the effective licensee of EMT’s stations as part of the bankruptcy process, opposed both requests. Samson and EMT are represented by the same attorneys, which EB said in a footnote could be an ethical violation. “This dual representation appears to raise a conflict that should be addressed,” the bureau said. It's “common practice” for bankruptcy trustees to hire specialty counsel who have background with the matters connected with a bankruptcy, Fletcher Heald broadcast attorney Davina Sashkin, one of the attorneys representing EMT and Samson, emailed. “Because Mr. Samson has control over EMT, he has essentially stepped into the shoes of EMT before the FCC,” she said. EB “has engaged in a relentless scorched earth campaign against EMT and then Mr. Samson, and are now calling my integrity into question,” Sashkin said. “It is wholly unprofessional.” The bureau didn't comment.The ALJ proceeding is on hold while awaiting a decision from the bankruptcy court on whether the bankruptcy will proceed, and on whether the ALJ case should be stayed if it does, the filings said. Administrative Law Judge Jane Halprin scheduled a pre-hearing teleconference for Nov. 14 on the timeline for the ALJ case, over Samson’s objections, said an order Wednesday.