Air America restructures under new banner

Chicagotribune ^ | 06/19/04 | John Cook

[Labyrinthos]

Hmmm... can you really buy only a company's assets and leave the liabilities behind?

Yes and no. Since this appears to be a sale of all or substantially all of the assets of the corporation, the transaction constitutes a "bulk sale" under Article 5 of the Uniform Commercial Code and as result, the buyer/seller will have to give notice to creditors so they can grab onto the proceeds of the sale. Failure to give creditors notice of the bulk sale could result in a transfer of the liabilities to the buyer. The sale could also constitute a fraudulent conveyance, depending upon how it is structured, which could also result in the buyer being responsibe for the debt up to the value of the property transferred.

[So Cal Rocket]

Mel Brooks should make a movie about this!

[fhlh]

"It was a fun party, until I knew I was paying for it," says Bob Visotcky Typical Liberal... would only attend the function if it was on someone elses tab....

[VRWC_minion]

Nice way of saying they went belly up and are liquidating whatever assets are left.

[WHBates]

Actually if done right it can be a good thing. However, if your intentions are to screw the creditor and they were dumb enough to lend money without conditions......? Somebody could get screwed and probably will.

I also had s similar experience. But none of the parties had any intent but to have a new beginning

[VRWC_minion]

PIQUANT: Dictionary Entry and Meaning

Pronunciation:			'peekunt
Matching Terms:			piquance, piquancy, piquantly
WordNet Dictionary
	Definition:		[adj]  attracting or delighting; "an engaging frankness"; "a piquant face with large appealing eyes" [adj]  engagingly stimulating or provocative; "a piquant wit"; "salty language" [adj]  having an agreeably pungent taste
	Synonyms:		attractive, engaging, salty, savory, savoury, spicy, stimulating, tasteful, zesty

[TC Rider]

French = Piquant
English = Pissant

As in, "Welcome to Pissant radio! We're sassy and insignificant!

[Casloy]

It's still going bankrupt. There may have been mismanagement but in the end it's the complete lack of interest that did it in. Liberals live in a fantasy world where they think everyone wants to hear what they have to say.

[Flatus I. Maximus]

Mr. Cohen told Mr. Walsh and others that he was diagnosed with brain cancer in 2001 only to make a miraculous recovery that spurred him to devote his life to liberal causes.

Further proof that liberalism is merely another symptom of a serious brain malfunction.

[bray]

Dead Airmerica is the Enron of Radio!

Pray for W and Our Awesome Troops

[conservonator]

...are restructuring the company to free it of any obligations incurred...

Is this how the liberal media describes impending bankruptcy(financial) for a liberal media member?

[Spok]

I hear their real financial problem is Franken's deli tab.

[Jambe]

This has got to be a scam!

Just what ASSETS does this company have to sell?

It doesn't manufacture any product, so there's no inventory. Sounds like it rents/leases all of it's space, thus no buildings or related capital assets.

For a company that's only been around a very short time and can't pay it's bills there can't be many assets.

Except for studio equipment, office items (desks, computers, copiers, etc.) they don't have much in the way of assets.

[kennedy]

The purpose of the transaction is twofold: to eliminate Cohen and his partner Rex Sorensen's shares in the company, and to insulate the cash-strapped network from any debt or other obligation that Cohen may have incurred.

Sounds an awful lot like a fraudulent conveyance to hinder or delay creditors to me.

[Space Wrangler]

The investors, including Highland Park couple Sheldon and Anita Drobny and Air America Chief Executive Doug Kreeger, formed a new corporation, Piquant LLC. They plan to use the new entity to purchase the assets of Air America from Progress Media and RadioFree America, two related companies that own and operate the network.

Look for the new book by the Drobny's and Mr. Kreeger How to Pi$$ Away Perfectly Good Money at Amazon now!

[AmericanChef]

They're probably just screwing another corporation, so that's OK in their book.

[FourPeas]

I thought liberals were against 'business screwing people'

You're close. They're against it as long as they're not in on the action.

[1rudeboy]

Bingo.

[rod1]

You got it--their insolvent-- at least until they run and hide from creditors.

[kennedy]

Messrs. Cohen and Sorensen were meanwhile raising money for their programming arm. They told potential backers they would put $12 million of their own money in the venture, according to two investors and Messrs. Walsh and Saade, who attended many pitches. Messrs. Cohen and Sorensen also told investors and employees they had raised $18 million from individual donors, these people say.

Norman Wain, a Cleveland radio entrepreneur, says Mr. Cohen told him that Air America already had $30 million in the bank. Mr. Wain says he was told that his contribution would not be used until a separate round of financing was completed.

Messrs. Walsh and Saade say Mr. Cohen told them that TV producer Norman Lear had given Air America $2 million and pledged another $2 million. They also say Mr. Cohen told them that Laurie David, wife of comedian Larry David, had invested $2 million and pledged another $4 million.

Buoyed by the good news, Mr. Walsh told reporters on a March 11 conference call that the network was "well on our way" to raising "upward of $30 million" by its planned March 31 launch.

In fact, Mr. Lear and Ms. David were approached by Mr. Cohen but didn't invest, their spokespeople say. The amount raised totaled only $6 million, Mr. Cohen and Air America executives agree.

Unleash the plaintiffs' lawyers! Let the securities fraud lawsuits begin!