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Air America Files for Bankruptcy

Air America Radio, the liberal network that features comedian Al Franken, has filed for Chapter 11 bankruptcy protection, a month after denying rumors suggesting the move. The network, which started in 2004 as an alternative to conservative talk shows, has been plagued with financial issues for some time, having lost $9.1 million in 2004, $19.6 million in 2005, and $13.1 million so far this year, according to the AP. Air America also lost two directors in the last two months.

Air American spokeswoman Jaime Horn told the AP that the network was forced to file once negotiations with a creditor from the company’s early days broke down. Air America, which also features Randi Rhodes and a syndicated show from Jerry Springer, will continue to air with help from its current investors while it attempts to resolve its issues with creditors. “Nobody likes filing for bankruptcy,” new CEO Scott Elberg said in a statement. “However, this move will enable us to concentrate on informing and entertaining our audience during the coming months.”

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