Drobny: most Air America creditors to get shafted

Professional accountant and Air America Radio co-founder Sheldon Drobny has heartening news for all those who are owed money by the network: you're only getting $500,000 to share between all of you.

Apparently, the scheme worked like this:

...Rob Glaser, Terry Kelly, and Doug Kreeger started funding the post bankruptcy operations with what is called "debtor in possession" (DIP) loans. DIP loans always have priority of payment in a Chapter 11 proceeding. The DIP loan as of the most recent court filing was $3.25M and there are outstanding preferred creditor payments totaling about $500,000. Therefore, the net proceeds from the $4.25M sale available to all other creditors are $500,000. All the investors and virtually all the creditors have been abandoned despite their strong support and belief in AAR.

You'll be delighted to know that everything worked out OK for Sheldon:

There is an old Yiddish word, beshert, which means that it was meant to be. I believe that the recent events concerning AAR were beshert and that it was the best thing that ever happened to the Drobnys in our efforts to make a positive impact on the way the MSM operates.

Posted in Sheldon Drobny at February 8, 2007 11:07 AM

Comments

The other day the NY Times reported that Piquant needs to have cash by Feb 15 for AAR to keep
operating

Posted by: raccoonradio at February 11, 2007 07:14 AM