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BREAKING NEWS: AAR Has Just Declared Chapter 11 - Staying On Air-Will Reorganize

D

dampier

The network had denied rumors just a month ago that it would file for bankruptcy, but on Friday Air America said negotiations with a creditor from the company's early days had broken down.

The network will stay on the air while it resolves issues with its creditors, spokeswoman Jaime Horn told the Associated Press. A formal announcement was expected to be made later Friday.

No programming changes are anticipated and the network will operate as usual.

(It looks like AAR will need some cash money going forward. Listeners will probably not notice much difference, and I have a feelings they'll find money soon enough. This could be an opportunity for the Jones/DR people.)
 
Good catch, Phil.

The worst part of this is somewhere Maloney is gloating (among others).

I'm sure this announcement comes as a disappoint to those who believed AAR's earlier statements, and based on that defended AAR. Once again, AAR management shows a lack of integrity in its dealings with the industry, the public and most of all, it's fans.

But whatever happens in the re-organization, the progressive talk format is not going away any time soon. And, even with their various mis-steps, AAR deserves credit for helping to bring the format into being.

I predict Randi Rhodes will also be around. As for other AAR programming, well..... ::)

Listeners in markets which make selective use of AAR (along with local shows, Stephanie Miller, Thom Hartmann, Ed Schultz, Lionel and others) will not notice much difference, as Phil said. Other listeners, however, may notice some changes. I doubt anyone will step forward to bail them out, even Drobny. Someone, like Jones, may acquire AAR's assets.
 
If the network would start to disband. I could see Randi Rhodes continue on and probably improve her station total after an intitial drop off. Franklin would probably gone off the radio altogether. Maddow maybe able get a local station, not much more. Sedar will probably do something else.
 
fred flintstone said:
I'm sure this announcement comes as a disappoint to those who believed AAR's earlier statements, and based on that defended AAR. Once again, AAR management shows a lack of integrity in its dealings with the industry, the public and most of all, it's fans.
Click to expand...

I don't know if you can say this. They told the truth a few weeks ago when they said they were not declaring bankruptcy at the time. It sounded like they were in talks to get a cash infusion and there was no need to declare bankruptcy. But as those have now apparently fallen through, it's a new day. I wonder if that was Drobny turning them down. I think Franken not getting his paycheck was the clear indication there was an issue.

I don't personally think AAR is going to go anywhere. Those on the sidelines who want to invest in the operation but didn't think it was an urgent matter will probably step up now. Or there will be a merger with one of the other operations doing libtalk and then we'll get an infusion of more show hosts. The only war then will be between Rhodes and Schultz over who gets the afternoon drive slot.

Listeners won't notice anything different on the air unless they dissolve, and I am more optimistic than you are that they'll survive, either as a full service network or program syndicator.

As far as Baloney goes, all you need to know is that he was wrong back then and he had no clue about today's announcement, so it's just more proof he guesses more than he knows.
 
It's already being discussed in news-talk. They are not going off the air. All programming will continue as normal while they reorganize their financing.
 
Will any stations carrying AAR programming bail out in response to this news?
- Those with weak audience and revenue numbers with the format?
- Turnkeys wanting "worry-free" operation and with other 24/7 format options?
- Any major stations getting pay to play money?
- WWRL New York where AAR has an LMA (and owes rent)?
- Stations with other progressive talk programming options?

They may be a rush for the exits.
AAR's weaker shows, especially, may lose clearances to other progressive talk programming.
AAR's weaker stations may pick up services like ESPN Radio, Fox Sports; or even try Oldies or Standards 24/7 satellite-delivered formats in smaller markets (where retail advertisers will buy those formats).

There will be a winnowing down process. The strong progressive talk stations will survive and continue with the format. AAR may well not continue in anything like its present form. That does not mean the format will die. It does mean, other players will come to bat.
 
Phillip Dampier said:
It's already being discussed in news-talk. They are not going off the air. All programming will continue as normal while they reorganize their financing.
Click to expand...


Continue as normal? Oh lovely. More screams, screeches, whining, and crying. :D
 
I think it is far more likely there will be a wait and see for the next month to see if they can arrange new funding. The LMA issue may be a problem though.
 
Maloney is reporting today that talks between AAR and Sheldon Drobny for a buy-out of AAR broke down and Drobny walked away from the table. Maloney claims both parties were "moments" from a deal. Maloney also speculates the walk-out could be Drobny's ploy to get a better deal out of AAR. If so, AAR may have called his bluff with the chapter 11 filing.

More to come.
 
All programming will continue as normal while they reorganize their financing.
Click to expand...

That's not all they will have to reorganize--it may be a reorganization of the management structure, too. It's up to the compay working with the creditors to maximize the avenues for the largest return of the creditors' investments or claims. Some of these creditors, no doubt, may elect to receive shares of the newly-organized Air America Radio.

And when they're shareholders, nothing says the company will operate the same way.
 
(was looking for source, more info--looks like AP, also ************* has it...and yes REqualizer has bit about Drobny
dropping out)
 
NEW YORK (AP) - Air America Radio, a liberal talk and news radio network, has filed for Chapter 11 bankruptcy protection, a network official told the AP.
http://news.yahoo.com/s/ap/20061013/ap_on_bi_ge/air_america_radio_bankruptcy_3
Click to expand...

Will landlord WWRL 1600 evict tenant Air America Radio after a little more than a month? This could be a replay of what happened two weeks after AAR launched. Rent checks bounced and Multi-cultural broadcasting bounced AAR from stations in LA and Chicago. Reportedly, AAR sometimes had touble meeting the rent and was slow to pay the landlord at WLIB, and this is what promoted ICBC not to renew AAR's lease.
 
Phillip Dampier said:
It's already being discussed in news-talk. They are not going off the air. All programming will continue as normal while they reorganize their financing.
Click to expand...

I thought I'd post it in here...because that other topic will probably close when it becomes partisan.

From allaccess:
AIR AMERICA RADIO has filed for Chapter 11 bankruptcy. The network was forced to file when an unnamed creditor did not agree to proposed resolutions of outstanding debt and reportedly moved to seize the network's assets. PIQUANT LLC will continue to operate for now under a credit facility established by DEMOCRACY ALLIES LLC, with VP SCOTT ELBERG upped to CEO.

"Nobody likes filing for bankruptcy, however, this move will enable us to concentrate on informing and entertaining our audience during the coming months," said ELBERG in a press release. "Staying on the air is crucial for the Network's primary ratings period as well as for the country which is facing its most important mid-term election in recent history."
 
raccoonradio said:
more info via *************

http://www.*************/news/2006/10/13/D8KNQMG84.html
Click to expand...

AP:
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.
Click to expand...

This would seem to confirm Maloney' story (see above), which named Sheldon Drobny as the "creditor from the company's early days."

The AP story adds that AAR also named (another) new CEO today.
 
And, because conservative bloggers don't really seem to know much about how Ch. 11 works, it is a reorganization, not a liquidation. It's business as usual for now.

I'm not surprised at the bankruptcy thing. And it coincides with the naming of a new CEO, former WLIB GM Scott Elberg.
 
OH MY GOSH, you mean they actually LIED TOO?

Say it isn't so!

After weeks of denial the truth is finally revealed after some lame excuse that negotiations "just recently broke down".

I can't wait to listen to Sean Hannity today.
 
FightingIrish said:
I'm not surprised at the bankruptcy thing. And it coincides with the naming of a new CEO, former WLIB GM Scott Elberg.
Click to expand...

Under the LMA with AAR, WLIB was a computer in a closet. Under Elberg's watch, they did no local programming (ICBC did keep some of their programming on the station, the lease was not 24/7). And despite setting up a local sales department after AAR was on WLIB for more than a year, local sales were weak at best.

But AAR management does have a habit of recycling some "favored" people despite past performance.
They are political types after all. They take care of their friends.
 
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