Air America Radio Announced Today That It Has Filed For Chapter 11 Protection

Statement:

NEW YORK-October, 13, 2006-Piquant, LLC, which does business as Air America Radio, announced today that it has filed for Chapter 11 protection in the United States Bankruptcy Court for the Southern District of New York. This regrettable action became necessary only recently when good faith efforts to resolve outstanding debt with a creditor from the company's earliest days broke down.”

The bankruptcy filing will allow the company to continue offering its complete line-up of programming while it deals with its creditors in the reorganization proceeding.  To ensure the company's continued operation without interruption, a credit facility will be provided by Democracy Allies LLC.  The Management and the Board of Directors of Piquant remain fully committed to broadcasting our popular programs and championing the progressive cause during what we are confident will be a very brief restructuring period.

In recent months, the company has been seeking additional investment to finance its continued growth, and it expects to continue and complete discussions for new financing during the Chapter 11.

The Board of Directors has named Vice President Scott Elberg as the Company's Chief Executive Officer. "Nobody likes filing for bankruptcy, however, this move will enable us to concentrate on informing and entertaining our audience during the coming months,” said Elberg.  “Staying on the air is crucial for the Network's primary ratings period as well as for the country which is facing its most important mid-term election in recent history.”

Air America, headquartered in New York City, currently produces 19 hours of original programming a day and is heard on 92 affiliates reaching 58 percent of the country. Air America affiliates reach 2.4 million listeners per week, Mon-Sun 6a12m. 

Piquant is represented in the Chapter 11 case by Tracy L. Klestadt and Sean C. Southard of the law firm of Klestadt & Winters, LLP, 292 Madison Avenue, 17th Floor, New York, NY 10017, telephone (212) 972-3000.