Air America Radio Files for Chapter 11

Glenn · Post by **Glenn** » Fri Oct 13, 2006 8:13 pm

Air America Radio Files for Chapter 11

http://www.airamerica.com/

By SETH SUTEL : AP Business Writer
Oct 13, 2006 : 4:50 pm ET

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.

Editor's note: AP Business Writer Vinnee Tong contributed to this story from New York.

Editor's note: ___

The Rizen shloemoe · Post by **The Rizen shloemoe** » Fri Oct 13, 2006 8:18 pm

Whatever happend to the Al Franken decade?....I was ready!!!
....I was hoping to follow it up with shloemoe decade???

Glenn · Post by **Glenn** » Fri Oct 13, 2006 8:21 pm

I tried listening to Air America but pretty much though it sucked. I wanted to like it but couldnt get into it.t

The Rizen shloemoe · Post by **The Rizen shloemoe** » Fri Oct 13, 2006 8:27 pm

Glenn wrote:I tried listening to Air America but pretty much though it sucked. I wanted to like it but couldnt get into it.t

actually Al Franken kinda sucks and liberals in America are
lost...they got the tickets man!...but they dont know where
the turn-styles are.....The message cant compete in this
perceived age o plenty....

....we're gonna all pay
tomorrow....

obiwankobe · Post by **obiwankobe** » Mon Oct 16, 2006 12:10 pm

jr · Post by jr » Mon Oct 16, 2006 2:18 pm

i enjoy listening to air america
i just cant stand that rhodes lady screaming at me....
i do listen though....
its right up my alley

Glenn · Post by **Glenn** » Mon Oct 16, 2006 2:28 pm

I'm listening now.

Air American will stay on the air at least till after the elections.

Glenn · Post by **Glenn** » Mon Oct 16, 2006 2:35 pm

Nope, it's still boring.

jr · Post by jr » Tue Oct 17, 2006 10:21 am

Glenn wrote:Nope, it's still boring.

ahhaah

im a boring person so i like it
ahahha
especially while driving

ps - its better than no dicky barrett...

rotter · Post by **rotter** » Tue Oct 17, 2006 5:34 pm

its better than K-RocK..

....or BoB Fm

...total shit