Crain was found in contempt of court late last month after Circuit Judge Cristi Beaumont held that he was “deliberately thwarting” the work of a court-appointed receiver. Beaumont appointed the receiver in January to take over operations for the company because the partners, through their companies, “clearly [could not] work together to manage and operate [the company] in accordance with the operating agreement.”
But the business relationship between the partners became “extremely strained” over time, leading to the company “being deadlocked in the management and operation of its affairs,” according to a complaint filed by Renfro.
Crain opposed the appointment of the receiver and has appealed Beaumont’s order to the Arkansas Court of Appeals. He also argued that the receiver was making “major business decisions” when he should have been “managing the business to preserve the assets.”
But Judge Beaumont found that the receiver was “undertaking all appropriate efforts to make CCB profitable” and sentenced Crain to a five-day suspended jail sentence, which required him to comply with the receiver.
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“Crain Media Group LLC respectfully disagrees with Judge Beaumont’s findings and is in the process of appealing her decision,” Davidson said.
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