***Updated - Air America Radio Denies Bankruptcy Filing***
According to Brian Maloney at The Radio Equalizer, Air America is bankrupt and up for sale:
Cash- starved Air America Radio is broke and up for sale, the Radio Equalizer has learned exclusively.
In addition, a liberal website is reporting that the so- called "progressive" radio network will announce a bankruptcy filing on Friday. As of this moment, the story has yet to be verified.
What our own sources are telling the Radio Equalizer is that two potential buyers have recently been looking to scoop up Air America's assets. But internal board squabbling has created a disunited front, with some members looking to hand the network back to eccentric co- founder Sheldon Drobny, while the rest shop for buyers.
Jon Sinton, a former Air America and Clear Channel Radio executive, is said to be leading the effort to seek a purchaser.
For those who have not been following Air America's very slow and painful decline, its declaring bankruptcy is not a surprise. Michelle Malkin has documented for some time now Air America's financial woes beginning with her June 2005 post that Air America was being investigated for funneling money meant for kids and seniors into its own bank accounts.
Lorie adds: Michelle Malkin is right when she says the following about Brian Maloney's exceptional work on this story:
You know, if Brian Maloney were a liberal blogger who had single-handedly blown the whistle on the financial shenanigans of a conservative radio conglomerate, he would be the toast of the media establishment. He'd be invited on all the prime-time talk shows. He'd be a "Person of the Week" on the nightly news. He'd get a profile in People magazine. But he won't get any of that.He won't get old media recognition, but hopefully he will get some new readers as a result. If you aren't already reading The Radio Equalizer, be sure to check it out.
Update: Air America Radio says it's not declaring bankruptcy:
But just before 5 p.m. on Wednesday, Air America spokesperson Jamie Horn told Eric Deggans, media critic for the St. Petersburg (Fla.) Times, in an e-mail: "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."
Franken, however, confirmed that the network, which debuted in March 2004, is suffering from cash-flow problems. He told Radar Online about the bankruptcy claim: "I don't know if that's true or not. We do know that there have been cash-flow problems. I haven't been paid in a while. Like, there's no cash flowing to me."
Hat tip: Hot Air