Lawyer: Air America in trouble

Remember back last year when "Radio Free America" sold its assets to the current owners of Air America, Piquant LLC? Multicultural Broadcasting - owners of AAR's original Chicago and L.A. stations - was involved and sued Piquant LLC.

Our VRWC legal team* has reviewed the complaint, and comments:

The complaint alleges that the directors and officers of Radio Free America owed a "fiduciary duty of loyalty to Radio Free America's creditors," which they breached. The complaint also alleges that the directors and officers of Piquant (the transferee) aided and abetted that breach.

There are a number of precedents holding that when a corporation is insolvent, the directors and officers in fact do owe fiduciary duties to creditors...

The transfer of Air America's assets from Radio Free America to Piquant appears to be a self-dealing transaction, since at least some of the former's owners, directors, and/or officers are also among the owners of the latter. As such, the defendants will have the burden of proving that Radio Free America received fair consideration for the assets being transferred...

* That's just a joke. There is no such thing as the "VRWC legal team". In fact, there's no such thing as a "VRWC" to begin with.

Posted in Meta at August 19, 2005 08:31 PM

Comments

Air America Sucks. I listened to it a few times and was annoyed by the presentation. Its sounded like a sensational talk show. I wished It would have been better. The neocons rightfully deserve a trouncing but these big mouth radio dj's from Air America make me change the channel.

Posted by: Ed Black at August 19, 2005 10:31 PM