ThinkProgress: Air America To Declare Bankruptcy

[LTR]

Air America Radio will announce a major restructuring on Friday, which is expected to include a bankruptcy filing, three independent sources have told ThinkProgress.

Air America could remain on the air under the deal, but significant personnel changes are already in the works. Sources say five Air America employees were laid off yesterday and were told there would be no severance without capital infusion or bankruptcy. Also, Air America has ended its relationship with host Jerry Springer.

(snip)

Radio giant Clear Channel is so committed to progressive talk radio that, this week, it will announce a partnership with the Center for American Progress, Jones Radio, and MSS Inc., to conduct a nationwide search for the next Progressive Talk Radio Star.

http://thinkprogress.org/2006/09/13/air-america-bankruptcy/
http://www.rawstory.com/showarticle.php?src=http%3A%2F%2Fthinkprogress.org%2F2006%2F09%2F13%2Fair-america-bankruptcy%2F
http://www.huffingtonpost.com/2006/09/13/air-america-to-declare-ba_n_29347.html

(Edit to add links)

[longship]

1. Shit!!

Not good news.

[JPZenger]

31. Reorganizational Bankruptcy Makes New Financing Possible

There are two main types of business bankruptcy - reorganizational bankruptcy and liquidation bankruptcy. Reorganizational bankruptcy gives a company time to improve their business practices without having creditors force immediate payments.

Reorganizational bankruptcy also is extremely important in obtaining new financing. No one wants to invest in a company that is threatened with bankruptcy, because they could lose everything. However, once bankruptcy is filed, then the old debts are given lower priority. The person who is newly investing money in the company is given preference in the payment of debts. Therefore, if bankruptcy is threatened, then a company often must declare bankruptcy in order to attract new investors.

Hopefully, that is the case, the AAR has a major new investor lined up.

[Crazy Dave]

2. If things don't get better...

...maybe they should ditch paying the high prices for on-air time over the regular radio airwaves and keep their internet and satellite programs going. It would be a real shame if they didn't make it and shut down completely.

[onehandle]

6. delete. nt

[NYCGirl]

3. Restructuring under bankruptcy does NOT mean it would automatically

shut down. More than a few airlines have done that, and they're still flying.

[onehandle]

7. Yep. That's exactly right. It's not over. nt

[Warpy]

8. Exactly, and restructuring to XM and online streaming

might be the best thing they can do.

Most people out in radioland have been completely turned off by right wing talk radio or they are Koolaid drinkers. The public airwaves might not be the right place.

However, they could offer some hosts in syndication to college and public stations.

[LisaM]

16. Well the public airways are the only way I can access them

I certainly hope that they can find a way to keep going. Our local progressive station (1090 in Seattle) is doing quite well.

[ronnykmarshall]

20. Oh there you go again ..

why can't you just join in on the "Air America is dead mind" set??

You and your OPINIONS!!! Probably a plant from KKKarl Rove. I see through you!! Can't fool ME!!


SHESSH!

:sarcasm:

[bluestateguy]

4. This strikes me as false

nt

[LTR]

9. ThinkProgress is a good source

I trust them.

If this were from Brian Baloney (aka the long-unemployed radio has-been who publishes the "Radio Lobotomizer"), I'd think it was bullshit.

That it's coming from a respectable blog gives it a bit more cred.

[Exiled in America]

10. Not from think progress. (nt)

Think Progress is accurate, and the information is independantly confirmed from three separate sources. That sounds like more than a rumor, but I could be wrong...

[seriousstan]

21. I think you have been "struck" too many times.

Failure to see what is directly in front of you will lead people to believe you are either blind or purposely ignoring the obvious. Identifying a situation and taking steps to rectify a problem is the only way to advance. Otherwise you are left at the side of the rode denying the fact that the parade is passing you by. Now is the time to rally for a solution, not deny a problem.

[TheWatcher]

52. Self-Delete

[rodeodance]

5. damm.. The Rw'ers will have a hay day!!

[MikeNearMcChord]

11. Not really, ratings for RW talk are falling also and

those people are either going to sports talk, satellite or Ipods. To me. It seems to me that AA was a management problem, it takes time to build an audience, and you can't do it by switching and dumping hosts.

[krispos42]

33. Host like... Mike Malloy?

I don't know how many thousands of people dumped their Air America Premium subscriptions and turned off their radios when Mike got dumped.

Seems to me they should can the idiot who dumped Mike, offer Mike a nice raise, and let MIKE deliever the news to the exec that did the firing, with just as much warning as the exec gave Mike.

[MADem]

43. I rather doubt that caused their woes--likely, they dumped MM to try to

pay a few bills and forestall the inevitable. That firing happened a very short time ago, it wouldn't even reflect on their bottom line yet.

[krispos42]

48. It's a pleasant thought, though! :-) n/t

[stlsaxman]

50. Maybe Malloy will be Clear Channels "Next Big Progressive Star"

one can only hope.

But that 2nd paragraph in the OP makes no sense to me whatsoever...

"Radio giant Clear Channel is so committed to progressive talk radio that, this week, it will announce a partnership with the Center for American Progress, Jones Radio, and MSS Inc., to conduct a nationwide search for the next Progressive Talk Radio Star.".... WTF?

Clear Channel is about as "committed to progressive talk radio" as Bush/Cheney is to capturing Osama.

:eyes:

[Edgewater_Joe]

12. ThinkProgress Is Part Of The Center for American Progress

... and the Center for American Progress is part of a partnership with Clear Channel to find a new Progressive Talk Star?

Sorry, but there can't BE a clearer conflict of interest since it's their "three sources" that is making this report.

[LTR]

17. I'll give you that

But I don't think it will help their cause by reporting negative information on AAR. They basically need each other, and eating one's own does not bode well for their cause.

Also, Jones, which is part of this talent search, has a lot at stake with AAR, since they handle AAR's advertising sales.

[RoveRage]

13. Well crap, I've done my part to support this worthy cause. n/t

[AValdoux]

14. Who listens to talk radio

I think that is more the answer to this. Just because RW talk is more popular doesn't mean there are more RW's. In my experience, the people who listen to talk radio for long blocks are either retired or self employed or bosses. Most working people don't have the opportunity to listen to talk radio during the day. If you can listen to a radio at your job how many people put it on political programming?

As far as left slanted messages being failures tell it Jon Stewart or Stephen Colbert.


AValdoux

[seriousstan]

22. I do. As some here have commented, I take issue with some of the stars

Randy Rhodes' inaccuracies come to mind, but I listen to her and AAR everyday as much as I am able.

[grahamhgreen]

28. What inaccuracies?

[seriousstan]

30. Sorry, I am not going to hijack this thread and debate that subject here.

[TheWatcher]

53. Feel free to list at least one.

I don't think that would qualify as a hijack.

[proud2BlibKansan]

27. I do

I got a satellite radio just so I could listen to AAR.

[stepnw1f]

15. That Truly Sucks... We on the Left Have Nothing

but a few radio talk show hosts and a couple tv personalities.

[LTR]

18. GD thread

http://www.democraticunderground.com/discuss/duboard.php?az=view_all&address=364x2126690

[AngryAmish]

19. I think this is a distraction

[seriousstan]

23. Perpetrated by whom?

[janx]

24. "Star"

This might be part of the problem.

[Cassandra]

25. Thom's talking about the story now.

Not sure he knows more than that.
New CEO, Jim Wigget.
Hartmann syndicated by Jones. He owns his own program and cut a deal with AAR last year. He said he's not going anywhere. He's #1 in Washington State.

[jacklambert]

26. Ed Schultz is my man...

I really only have time to listen to Ed Schultz on my long commute home. He is the most reasonable one out there. Randi is a little strong for my tastes, but I only hear her when I am running errands in the evening. And I wonder what will happen to Franken. He's gotta be the highest $$ talent that they have on the network.

What are his ratings like??

[tinfoilinfor2005]

57. I think he is with Jones, actually...no?

[grahamhgreen]

29. Maybe they should do an IPO....

[krispos42]

34. Hmm.. the rich neocons will buy up all the stock and close them down n/t

[SoCalDem]

32. So ClearChannel will "help" them out.. How "nice"..

ClearChannel, that bastion of progressive thought..:puke:

As eager for liberal radio as I was, it always irritated me that Air America started out so shaky.. There are rich people on the left, and I was so hoping that they would step up and be the left's Rupert Murdoch..

Fox did not get where it is without a lot of his efforts..same goes for the Washington Times..

I refuse to believe that the right wing radio "shows" are really all that successful.. Most of their ads are shit..they are subsidized because their message is so impportant for them to have out there, so even if there are few ads of any consequence (who knows? maybe the companies that advertise with them are also right wingers..)

It's about having a venue to get the message out.,pure and simple..and it costs money..

All those decades of buying up radio stations culminated in Clear Channel.. What Air America tried to do was admirable, but they never had enough funding..

I hope they get everything straightened out..even though I never listen anymore..

[bdamomma]

35. Randi just announced she will be talking about this at 4 p.m.

[Karla Marx]

38. Sorry Alyce

Didn't see your post before I posted. D'oh!

[Karla Marx]

36. Randi Rhodes is going to address this at 4 pm (EDT)

She just said so on her show. Man, this sucks. Progressives can't get a break in Amerikkka today. All right-wing rhetoric all the time on cable and even the public airwaves, TV and radio. Newspapers aren't much better overall. At least we still have the Internet--for now. Hillary was right--it is a vast right-wing conspiracy.

[robcon]

37. Sometimes a bankruptcy clears the way to a profitable company.

It wipes out the equity of the owners, and probably will give some of that equity to its lenders.

New management is likely as well.

Good things can come of this. I hope.

[eagler]

39. Without the Fairness Doctrine this was bound to happen

because they have been excluded from most markets throughout the country. There is no single issue so important as the fairness doctrine simply because without it we can scream and complain all we want but only a very narrow audience is going to hear.

[dr.rock]

40. Its the hosts fault AAR isn't working

I don't know what Al Franken is doing going around like some
ambassador for liberals (with a big head to match) on the star trip.

Being pro-war isn't progressive. Neither is ignoring election fraud.
Him and Randi is the cause IMO, and Ed.

His show in so inffective in smashing the flying monkey right it
is just like listening to PBS or NPR total snooze fest. I do like
the parts with Tom Oliphant who is a real brain and a good writer.

I was dismayed to find out, that AAR can't stomach the slightest
criticism. I used to send little emails telling them "hey Randi always
interupts the callers, she too mean to them" or "why do you always
cut off the callers or talk over your guest before they made their point?"

They showed no character, in fact, retaliated against me for saying that.

Really poor interviewing skills, bad questions etc. Even when a Senator
or Congressman came on, Randi would go on a big diatribe instead of asking a question and letting them answer.

That is bad radio, letting the host go on and on and making everything
about YOU.(listening Al?)

Who died and made Al Franken, God?

Get over yourself Al, AAR is at the bottom of every market, according to the spring 06 Arbitrons, and it ain't because of Mike Malloy!

AAR isn't at the bottom because of the progressives, its because you and your boring CFR/DLC terror conversations on Iraq on how to get control of the country and capture Zarqawi.

This is progressive radio, not some DC think tank segment on PBS or
Charlie Rose for gods sake!

[jacklambert]

42. Randi is ineffective, Al and Bill are the Stars

First off, Ed Schultz is not part of AAR. He is part of the Jones Broadcast network. He is sort of a Progressive-lite in my estimation. Harmless and not about to make too big of a wave.

Randi is just a flat-out, scatterbrained lunatic. She couldn't communicate a complete a thought if you held a gun to her head. I listen to her for about twenty minutes at a time and she manages to cover twenty different topics with random thoughts, sidebars, quips, shots etc. It becomes very un-entertaining very quickly. Now go bounce your boobies.

Al Franken is the star of AAR for a reason. He has media saavy, he is entertaining, he knows what he is talking about and he gets good guests. It is a real radio show with a real purpose.

I also listen to Bill Press in the morning on Sirius, and he is another good one. Connected and knowledgeable, he brings some real content to my morning drive.

[jacklambert]

45. Just read off of Sludgereport that Al ain't gettin' paid.

That's not a good sign when your star attraction is dontating his time. I'm not holding my breath on this one.

[MADem]

49. A slightly more reliable link (it's the SUN but they quote Al)

Air America Radio, the liberal talk-show network, is fighting off bankruptcy, the face of the network, Al Franken, told The New York Sun yesterday.

The comedian and liberal author said the financial situation is dire enough that he has not been paid recently.

"We have a cash flow problem. That's what I know," Mr. Franken told the Sun. "No cash has been flowing to me. That's the first inkling I got of a cash flow problem."

Mr. Franken reportedly earns a base salary of about $2 million a year from the radio network.

He said he found out he was not being paid about a week ago, and that he has had some recent conversations with management over the financial problems.

"I know that they are trying to get it together to weather the storm like we have in the past. Hopefully we will," Mr. Franken said......

http://www.nysun.com/article/39678

[freefall]

51. Agreed, dr. rock

After hearing a couple of errors of fact uttered by Springer and Rhodes and general boringness on part of Franken, I quit listening last year. Periodically I try again but, other than a few moments of cleverness and insight hidden amongst the drivel and commercials, things don't seem to improve. Rhodes is an Ann Coulter in sheep's clothing. It is hard to tell who is more dangerous. Coulter is over-the-top and therefore easily identifiable as what she is and often laughable but Rhodes in her seeming accidental slip-ups is more insidious and possibly more dangerous. Rhodes actually questioned why Democrats bothered putting up a candidate against Olympia Snowe in Maine saying that Snowe was a moderate Republican, an oxymoron if I ever heard one. Some of the weekend shows seem to be better but I don't have the opportunity to listen much on weekends.

Peace,

freefall

[Name removed]

55. Deleted message

Message removed by moderator. Click here to review the message board rules.

[grahamhgreen]

59. Sorry - they've beat Rush and O'reilly in their home markets

[DemFromMem]

60. One post wonder

Hmmm.... Your first post trashes AAR. Do you really think people will think you're not a Freeper? Get real.

[jaybeat]

61. WTF???

Progressive talk radio is blowing away their right-wing competitors market after market, time slot after time slot.

Go back under that rock you just crawled out of. I'm sure the freaks must be missing you by now.

[napi21]

41. Does this mean that Malloy WAS fired for financial reasons?

I'm positive Springer was a pricy creature, and I sure don't know what kind of a deal...if any...was made with the hosts that stayed. Maybe Malloy couldn't afford to, or wasn't willing to budge?

[MADem]

44. Could be they paid a few bills and delayed the inevitable for a bit

with his salary and associated costs....

[420inTN]

46. ThinkProgress has updated with AAR's response to their story:

"If Air America had filed for bankruptcy every time someone rumored it to be doing so, we would have ceased to exist long ago; it may be frustrating to some that this hasn’t happened. No decision has been taken to make any filing of any kind, we are not sure of the source of these rumors and frankly can not respond to every rumor in the marketplace."

http://thinkprogress.org/2006/09/13/air-america-bankruptcy

[democracy1st]

47. thanks for the update

[robcon]

54. I'd interpret AA's response as follows:

'We're trying to avoid bankruptcy by getting new investors. Don't publicize our problems when we're trying to generate enthusiasm.'

As always, no company is bankrupt until the court decides it is. Unsecured creditors are probably pushing for bankruptcy, hoping for ownership in return for their unpaid loans and invoices.

I hope new investors are available to avoid bankruptcy.

[twilightlegends]

56. airamerica has not mention it

at all ,so i just think its right wing fantasy.theyve been saying this for years. and its everytime turned to be false.

[Earth_First]

58. "Clear Channel" "committed" and "progressive" hardly belong in the same

sentence.

[JPZenger]

62. Nighttime Shows Provided to AAR for Free

It is no secret that AAR was having trouble getting advertisers. Several months ago, they were running filler music to prevent having dead air.

Another person posted on DU that AAR's new nighttime shows are being provided to AAR for free. These are programs that handle their own advertising, and therefore just want more ears so they can increase their own advertising rates. If that's the case, then AAR's removal of Malloy may have really been just for financial reasons, as they claimed. I think Malloy and his staff were probably on the AAR payroll.