Precinct 333

Saturday, June 19, 2004

Liberal SOP -- Looks like fraud to me.

Seems like the friendly folks at AirAmerica, the latest leftist attempt to crash the talk radio market, are going to stiff the creditors!

Reports indicate that the company will sell all assets to a newly created company and leave all debts to with the old, which will then fold. This sweetheart deal, which involves allowing most of the original investors (except frontmen Evan Cohen and Rex Sorensen) to retain their investment while leaving those who did business with the 15 station network high and dry.

Since there will be no audits conducted to see that assets are fairly valued, no auction to get a market price, and not court oversight by a bankruptcy judge, I wonder who is keeping an eye on this sweetheart sale of assets between corporations owned by the same individuals. Where is the SEC and the attorneys general of the appropriate states? This appears to be nothing less than bankruptcy fraud mapped out in advance.


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