Air America Radio, the liberal talk and news radio network that features the comedian Al Franken, has filed for Chapter 11 bankruptcy protection, a network official told The Associated Press.The network had denied rumors just a month ago that it would file for bankruptcy protection. On Friday, Air America spokeswoman Jaime Horn told the AP that the filing became necessary only recently after negotiations with a creditor from the privately held company's early days broke down. Ms. 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, Ms. Horn said.
| “According to documents filed with U.S. Bankruptcy Court for the Southern District of New York, Air America owes Franken $360,750 and $9.8 million to RealNetworks Inc. CEO Robert Glaser, who owns 36.7 percent of the company and had previously served as its chairman.” |
According to documents filed with U.S. Bankruptcy Court for the Southern District of New York, Air America owes Franken $360,750 and $9.8 million to RealNetworks Inc. CEO Robert Glaser, who owns 36.7 percent of the company and had previously served as its chairman.
Tracy Klestadt of Klestadt & Winters LLP, an attorney for Air America's parent company, Piquant LLC, said Rob Glaser had resigned as a director as of Friday morning. GMr. laser, along with two others, is providing new financing through Piquant investor group Democracy Allies LLC.