Montana Radio Owner’s Chapter 7 Bankruptcy May Shut Station

A Montana radio station could be off the air for good after some strange back-and-forth by the owner leads a judge to order a Chapter 7 bankruptcy.

John Stokes is the owner and main on-air voice for AM station Z-600, broadcast from KGEZ in Kalispell, Montana.

Stokes filed Chapter 11 bankruptcy earlier this year after being ordered to pay $3.8 million to two local businessmen who accused him of defaming them on his radio show, reports the Flathead Beacon.

The businesmen challenged his bankruptcy claim in court, and tried to force him to convert to a Chapter 7 bankruptcy case so his property could be liquidated and they could claim the full amount owed.

This set off an examination of Stokes’ property holdings, which revealed lots of inconsitencies among the various court filings. The Flathead Beacon quoted Judge Ralph Kirscher:

“Literally millions of dollars of purported assets were omitted from the Schedules, including lawsuits, vehicles and at least one boat,” Kirscher wrote. “His declarations are not truthful.”

Stokes originally listed property holdings worth $3.1 million, but later changed it to $10.7 million. Other property values changed from $148,042 to $15.5 million between court statements. His property includes include a house on 80 acres, his radio station on 6.5 acres and a 160-acre easement.

Stokes also owns the operating license for his station and related radio towers, which could be quite valuable.

Despite these assets, Stokes said his monthly income was only $7,000. He claims his radio station only breaks even and much of his income is from listener donations. He said he has not filed federal taxes in almost 25 years.