Radio Network Air America Denies Bankruptcy Rumor

Website Reports Action Could Happen This Week

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NEW YORK (AdAge.com) -- Progressive satellite radio network Air America Radio is expected to declare bankruptcy this week, according to political website thinkprogress.org.
Air America is denying an online report that it will declare bankruptcy this week.
Air America is denying an online report that it will declare bankruptcy this week.

But a spokesman for Air America denied that report. "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," he said in an e-mail. "No decision has been taken to make any filing of any kind, we are not sure of the source of these rumors and frankly can not respond to every rumor in the marketplace."

Five employees from the network were let go Sept. 12, and the radio network dissolved its professional relationship with host Jerry Springer.

Air America has notably struggled with financial support in its two-year history. In July 2005, it took out an $850,000 loan from the Gloria Wise Boys and Girls Club. Later that year, the network began to solicit listeners for public radio-esque donations.
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