Air America Radio has filed for Chapter 11 bankruptcy protection, according to a
network official.
The US liberal talk and news radio network, which features comedian Al Franken, had denied rumours a month ago that it would file for bankruptcy.
But an Air America spokeswoman said today the filing became necessary only recently after negotiations with a creditor from the company's early days broke down. The network will stay on the air while it resolves issues with its creditors, she said.
In addition to Franken, the network also features shows from liberal talk show host Randi Rhodes and Jerry Springer.
Air America also said it had named Scott Elberg as its new CEO. Elberg, a former general manager of the radio station WLIB in New York, has been with the network since May of last year.
The filing marked the latest turbulence at the liberal talk radio network, which went on the air two years ago. This April, Danny Goldberg stepped down as chief executive and was replaced by an interim chief executive from a management consulting firm.
AP