Air America files Chapter 11
[they denied this a month ago - of course going bankrupt doesn’t mean
it’s the end of the line - a lot depends on whether they can get
financing to get them out of bankruptcy, or if the creditors will
just pull the plug]
Air America Radio files Chapter 11 POSTED: 11:12 a.m. EDT, October 13, 2006
NEW YORK (AP) — Air America Radio, a liberal talk and news radio
network that features the comedian Al Franken, has filed for Chapter
11 bankruptcy protection, a network official told The AP.
The network had denied rumors just a month ago that it would file for
bankruptcy. On Friday, Air America spokeswoman Jaime Horn told The
Associated Press that the filing became necessary only recently after
negotiations with a creditor from the company’s early days broke down.
The network will stay on the air while it resolves issues with its
creditors, Horn said. In addition to Franken, the network also
features shows from liberal talk show host Randi Rhodes and Jerry
Springer.
Horn declined to name the creditor with which talks had reached a
logjam. The company will operate in the interim with funding from its
current investor group.
Air American also said Friday it had named Scott Elberg as its new
CEO. Elberg, a former general manager of the radio station WLIB in
New York, has been with the network since May of last year.
The filing marked the latest turbulence at the liberal talk radio
network, which went on the air two years ago. This April, Danny
Goldberg stepped down as CEO and was replaced by an interim chief
executive from a management consulting firm.
“Nobody likes filing for bankruptcy,” Elberg said in a statement.
“However, this move will enable us to concentrate on informing and
entertaining our audience during the coming months.”