Democracy Allies LLC, Air America Radio, Delaware

SHADOWY "ALLIES"

Just Who's Propping Up Air America Radio?






*** Check Here For Updates ***

How is a company that was registered just a few days ago already in a position to bail out the newly- bankrupt Air America Radio network? From the whirlwind of news developments on this front yesterday, that one jumped right off the page.

Why? For one thing, Air America has a history of employing shell game- like tactics to keep the money moving around at all times. As with a street- corner hustler's game, you're never quite sure of the ball's location, as it slides from one position to the next. Just make sure you keep one hand on your wallet.

Word that a new entity called Democracy Allies LLC (registered in Delaware so recently that touching the documents is likely to smudge your fingers) would keep Air America broadcasting, instantly rang alarm bells here at the Radio Equalizer.

Who are these people and why would they prop up a company that has already lost so much money?

From their Delaware filing, here's what we have so far:

File Number: 4232391 Incorporation Date / Formation Date: 10/10/2006 (mm/dd/yyyy)

Entity Name: DEMOCRACY ALLIES LLC
Entity Kind: LIMITED LIABILITY COMPANY (LLC)
Entity Type: GENERAL
Residency: DOMESTIC
State: DE
REGISTERED AGENT INFORMATION
Name: THE CORPORATION TRUST COMPANY
Address: CORPORATION TRUST CENTER 1209 ORANGE STREET
City: WILMINGTON
County: NEW CASTLE
State: DE
Postal Code: 19801
Phone: (302)658-7581

While most news reports glossed over this important point, the New York Times included this:

Air America said that a company called Democracy Allies L.L.C. will provide it with the necessary financing to stay on the air. The company’s statement gave no information about that entity, but The Associated Press reported that it was an investor group set up by a former chairman of Piquant, Robert Glaser, who still owns more than one-third of the company.

And here's the AP's afternoon update:

According to documents filed with U.S. Bankruptcy Court for the Southern District of New York, Air America owes Franken $360,750 and $9.8 million to RealNetworks Inc. CEO Robert Glaser, who owns 36.7 percent of the company and had previously served as its chairman.

Tracy Klestadt an attorney for Air America's parent company, Piquant LLC, said Rob Glaser had resigned as a director as of Friday morning. Glaser, along with two others, is providing new financing through Piquant investor group Democracy Allies LLC.

And a Friday late evening update:

Judge Robert Drain of the U.S. Bankruptcy Court in New York approved motions at a hearing Friday afternoon that allow Air America to continue paying its wages and maintain its financial accounts.

The judge also approved interim debtor-in-possession financing of $900,000 from Democracy Allies LLC, an entity formed by Glaser and two other former board members, Terry Kelly and Kreeger. The full amount of the proposed loan, $2.6 million, would be considered at an Oct. 31 hearing.

To MSM types who haven't been closely following this story until now, none of what's in that last paragraph would necessarily seem odd. But to the Radio Equalizer, it's downright bizarre.

After losing millions in Air America so far, with little hope of recovering much of anything, Rob Glaser, Terry Kelly and Doug Kreeger (shown in photo) are going to pour more into it? Especially since all three had already walked away from this effort in utter frustration, it just seems impossible to believe they would return just to do it all over again.

Of all of Air America's key players over the past three years, these guys have been burned as badly as anyone.

How do we know the money is really coming from them? Could a third party be involved? Is George Soros still lurking in the shadows behind all of this?

Stay tuned.

UPDATE: At the Huffington Post, Sheldon Drobny confirms our earlier report regarding his attempted purchase of the network. He's ticked off about the bankruptcy!


FOR THE LATEST on key Massachusetts races, visit Bay State Showdown, our other site.

Images: David A Lunde for the Radio Equalizer, Frankengolf: Pete at IHillary

Your Amazon orders that begin with clicks here, regardless of what you ultimately purchase, greatly help to support this site's efforts. Thanks again!

Technorati tags: air america bankruptcy liberal radio talk radio al franken rob glaser george soros democracy allies llc delaware