Text 23819, 83 rader
Skriven 2006-10-13 21:14:33 av Sean Dennis (1:18/200.0)
Ärende: Say it isn't so!
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Hello, All.

All that hot air finally collapsed:

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Air America Radio Files for Chapter 11
Oct 13 4:22 PM US/Eastern
   
By SETH SUTEL
AP Business Writer

NEW YORK

Air America Radio filed for bankruptcy reorganization Friday, in the latest
patch of turbulence to befall the liberal talk radio network that launched two
years ago headlined by the comedian and author Al Franken.

The network will continue to operate with funding from its investor group, led
by RealNetworks Inc. CEO Robert Glaser, who owns 36.7 percent of the company,
and two other former board members.

The company also named a new CEO Friday, Scott Elberg, a radio executive who
joined the company in May 2005 following stints at the New York area radio
station WKTU and other places.

Air America had dismissed rumors just one month ago that it was planning to
file for bankruptcy protection. Spokeswoman Jaime Horn said Friday the filing
became necessary only recently after negotiations with a creditor broke down.

Court documents showed that MultiCultural Radio Broadcasting Inc., a creditor
with whom the network had tussled in its early days, had Air America's bank
accounts frozen.

The filing marked the latest setback for the liberal talk network. This April,
Danny Goldberg stepped down as CEO and was replaced by an interim chief
executive from a management consulting firm.

Glaser had previously served as the company's chairman and is owed $9.8 million
by the company, according to documents filed Friday with U.S. Bankruptcy Court
for the Southern District of New York.

Horn said Glaser and Franken were unavailable for comment Friday, but she said
Franken would discuss the issue on his show Monday. Air America owes Franken
$360,750 in wages and other payments, according to the court documents.

Air America has struggled financially since its inception. Court documents show
the company lost $9.1 million in 2004, $19.6 million in 2005 and $13.1 million
so far in 2006.

Air America also disclosed in court documents that two directors departed in
the last two months, Douglas Kreeger and Tom Embrescia. Gary Krantz also
departed as president in June, and executive vice president Tom Athans and
chief operating officer Carl Ginsburg left in July.

Radio talk show host Rush Limbaugh, whom Franken lambasted in a book called
"Rush Limbaugh is a Big Fat Idiot," took a jab at Air America's worsening
situation on his talk show Friday after a listener called in to ask about it.

"I'm not surprised _ it was doomed to fail," Limbaugh said. "They were not a
broadcasting concern to begin with. ... They went into business to affect
elections."

In addition to Franken, the network also features shows from liberal talk show
host Randi Rhodes and syndicated shows from Jerry Springer and Portland,
Ore.-based talk show host Thom Hartmann.

Judge Robert Drain of the U.S. Bankruptcy Court in New York approved motions at
a hearing Friday afternoon that allow Air America to continue paying its wages
and maintain its financial accounts.

The judge also approved interim debtor-in-possession financing of $900,000 from
Democracy Allies LLC, an entity formed by Glaser and two other former board
members, Terry Kelly and Kreeger. The full amount of the proposed loan, $2.6
million, would be considered at an Oct. 31 hearing.
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Later,
Sean

// sean@outpostbbs.net | Blog: http://meseems.wordpress.com | ICQ: 19965647

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