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WHO'S IN CHARGE HERE?
Magpie is a former journalist, attempted historian [No, you can't ask how her thesis is going], and full-time corvid of the lesbian persuasion. She keeps herself in birdseed by writing those bad computer manuals that you toss out without bothering to read them. She also blogs too much when she's not on deadline, both here and at Pacific Views.

Magpie roosts in Portland, Oregon, where she annoys her housemates (as well as her cats Medea, Whiskers, and Jane Doe) by attempting to play Irish music on the fiddle and concertina.

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Friday, October 13, 2006

Air America Radio really does file for bankruptcy.

Air America radio logoSince the liberal Air America Radio network first went on the air in early 2004, right-wingers have gloried in its financial mis-steps and have periodically (and errroneously) predicted that that network would go bankrupt. As of today, unfortunately, those predictions have come at least partially true.

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.

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, Horn said.

From what I know of Air America's history, its current problems are largely due to shaky startup financing and questionable business decisions made by management during the network's first year on the air. These were aggravated by the early decision to put on the air a lot of people who had no experience doing radio, which resulted in an air schedule that often sounded like bad college or community radio. While Air America is far more listenable these days, these early mistakes have been hard to recover from.

Despite the hopes of right-wing detractors, however, filing for bankruptcy doesn't mean that Air America is disappearing from the US airwaves any time soon. The network filed under Chapter 11, which gives it breathing space so that it can reorganize and cut deals with its existing creditors. In all likelihood, some of those debts will be erased by the court.

Via AP.

More: There's additional information about the bankruptcy in this Reuters report.

| | Posted by Magpie at 11:38 AM | Get permalink




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