As I suggested in another thread, Air America's lawyer may have told them that if they brought that argument into court, they would lose. It seems that Piquant LLC (the new owner of Air America) is simply Progress Media under a new name. It's not that easy to shake off your debts.
Air America was conceived by a wealthy Chicago couple, Anita and Sheldon Drobny. Mr. Drobny is a venture capitalist and liberal activist who writes an occasional column for a Web site that has compared Republican control of Congress and the White House to the Nazis' rise to power in Germany. ....
Mr. Cohen teamed up with Mr. Sorensen, 58, a business partner and the founder of Sorensen Pacific Broadcasting Inc., a network of five radio stations in Guam and Saipan. The two men agreed to buy the concept from the Drobnys for about $1 million, according to four people familiar with the transaction. The Drobnys haven't yet been paid. Messrs. Cohen and Sorensen say payment was based on performance milestones that haven't been met. "
"Many of Air America's investors and executives say they thought the network had raised more than $30 million, based on assurances from its owners, Guam-based entrepreneurs Evan M. Cohen and Rex Sorensen. In fact, Air America had raised only $6 million, Mr. Cohen concedes. Within six weeks of the launch, those funds had been spent and the company owed creditors more than $2 million.
When the problems came to light, "we realized that we had all been duped," says David Goodfriend, the company's acting chief operating officer. Messrs. Cohen and Sorensen say they didn't mislead anyone about the company's finances. They say they planned to invest more over time but didn't because of cultural differences with other managers"
"Mr. Walsh says he asked Mr. Cohen for proof of his assets. The entrepreneur showed Mr. Walsh documents that Mr. Cohen represented as real-estate and cash holdings valued at millions of dollars, Mr. Walsh says. Mr. Cohen denies saying the assets were his alone. He says the documents combined his assets with those of Mr. Sorensen and another business partner, Brooklyn real-estate developer Charles Cara. "
"[The board] asked Messrs. Cohen and Sorensen to resign and hand over voting control of their shares to Mr. Goodfriend, according to three people familiar with the negotiations.
"After the meeting, Air America executives examined the company's finances. "When we finally gained access to the bank accounts, we realized they were empty," Mr. Saade says. Mr. Cohen denies the bank accounts were empty although he concedes there wasn't much money left."