Liberal Radio Network Files For Bankruptcy

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MEDIA / LIBERAL RADIO "AIR AMERICA" GOES BANKRUPT

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Air America has struggled financially since its beginning in early 2004. Documents filed with the court show that the company lost $9.1 million in 2004, $19.6 million in 2005 and $13.1 million thus far in 2006.

The network owes the most money -- $9.8 million -- to Rob Glaser, founder of RealNetworks, Inc., who owns about 37 percent of the company and resigned as Air America chairman on Friday morning.

Air America Radio was started in an attempt to counter the influence of conservative talk-radio hosts such as Rush Limbaugh. Network executives initially said it would take four years to begin turning a profit.

Air America Radio Files for Bankruptcy Protection

~ By Randy Hall
CNSNews.com Staff Writer/Editor
October 13, 2006


CNSNews.com) - The liberal Air America Radio network sought Chapter 11 bankruptcy protection on Friday, filing documents that showed the company had lost nearly $41 million since May of 2004.

"This regrettable action became necessary only recently, when good faith efforts to resolve outstanding debt with a creditor from the company's earliest days broke down,'' the network stated in a press release. Democracy Allies LLC will provide credit "to ensure the company's continued operation without interruption," the release continued.

According to 25 pages of documents filed with U.S. Bankruptcy Court for the Southern District of New York, Piquant LLC -- which operates under the network's name - lists liabilities of $20 million and assets of $4 million.

Air America has struggled financially since its beginning in early 2004. Documents filed with the court show that the company lost $9.1 million in 2004, $19.6 million in 2005 and $13.1 million thus far in 2006.

The network owes the most money -- $9.8 million -- to Rob Glaser, founder of RealNetworks, Inc., who owns about 37 percent of the company and resigned as Air America chairman on Friday morning.

The radio network features such on-air talent as comedian Al Franken and talk show host Randi Rhodes and syndicates programming from TV personality Jerry Springer and Portland, Ore.-based host Thom Hartmann.

Also on Friday, Air America named Scott Elberg, who was a former general manager of radio station WLIB in New York, as its new CEO. Elberg replaced Jim Wiggett, who was acting CEO after record industry executive Danny Goldberg quit the job in April

"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."

Air America Radio was started in an attempt to counter the influence of conservative talk-radio hosts such as Rush Limbaugh. Network executives initially said it would take four years to begin turning a profit.

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