AIR AMERICA FILES FOR CHAPTER 11
-by Sam Seder
This is not AAR's official statement, just my thoughts, an official statement will be forthcoming...
Air America's parent company will enter into a Chapter 11 reorganization today. Frankly, this is good news. Because of a lack of capitalization and a clear business plan Air America has been behind the 8 ball since its launch. Despite these missteps AAR has, as a product, been wildly successful.
After only two and a half years, AAR continues to grow listenership, add affiliates and enhance our brand. With little fanfare, the Air America "Playbook", which was released Sept.18, hit number 14 on the times best seller list this past weekend. As of today, AAR currently produces 19 hours of original programming a day and is heard on 92 affiliates reaching 58 percent of the country. Air America affiliates reach 2.4 million listeners per week.
This reorganization will allow Air America to restructure itself and relationships it has had since its inception. It will also allow Air America to restructure these relationships to reflect its change in business model which took place September first of this year. At that time AAR essentially became a syndicator of progressive programming.
I have some general knowledge of Ch. 11 reorganization (my dad an attorney who specializes in this field). I know that to enter Ch.11 AAR will have to show a judge a reorganization plan and that there is operating funds to implement these plans.
I have spoken to our new CEO and am convinced there is at least a sensible and defined business plan to move forward. Sadly, it's the first time anyone here has articulated such a plan. It remains to be seen whether it will be properly executed but I am as encouraged about AAR's prospects as I have been in months.
People should keep in mind that while there is other liberal/progressive talkers distributed by other syndicators, AAR, by providing a turnkey format, has greatly contributed to their success. Ed Schultz, Stephanie Miller, Bill Press and others would never have enjoyed the success they have had over the past two and a half years were it not for AAR turning nearly 100 stations around the country into Progressive outlets.