***News Bulletin***
AAR Purchase Deal Takes Another Step Forward
The Air American Radio sale took another step closer to being finalized when the bankruptcy court approved a move to sell the networks meager assets at an auction on Friday.
According to the Associated Press, the liberal news and talk radio network the auction will start with a $4.25 million bid from a consortium of purchasers formed by the chairman of SL Green Realty Corp, Stephen L. Green. Judge Robert Drain of the U.S. Bankruptcy Court in Manhattan said the consortium can receive a $150,000 breakup fee if their offer is topped at t
he auction. No other bidders have stepped up publicly, to participate in the auction. However, the sources have identified up to ten parties interested in acquiring AAR.
he auction. No other bidders have stepped up publicly, to participate in the auction. However, the sources have identified up to ten parties interested in acquiring AAR.Competing bids, which must start at least at $4.6 million, are due by Thursday with a 10 percent deposit. Bidding will increase in at least $50,000 increments. A sale hearing will be held immediately following Friday's auction.
Air America Radio's parent company, New York-based Piquant LLC, said the sale would allow it to pay off its $3.25 million debtor-in-possession loan and provide $500,000 to pay creditor claims and another $500,000 to cure certain contracts.
The proposed sale, the filing said, will enable the company to keep broadcasting and avoid "significant" rejection damage claims that would accrue if it was forced to liquidate.
Air America has been struggling to find a buyer since it filed for Chapter 11 protection on Oct. 13, 2006, listing assets of $7.8 million and debts of $19.8 million.
Air America has been struggling to find a buyer since it filed for Chapter 11 protection on Oct. 13, 2006, listing assets of $7.8 million and debts of $19.8 million.
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