An American radio network has files for Chapter 11 bankruptcy protection, something which it denied would happen just one month ago.
Air America Radio, which provides live network programming 20 hours a day to 87 terrestrial stations, expects to stay on air while they resolve issues with creditors.
Air America Radio is a liberal talk and news radio network which launched just two years ago. On Friday, company spokeswoman Jaime Horn told The Associated Press that the filing became necessary only recently after negotiations with a creditor from the company's early days broke down.
Air America has also appointed a new CEO to help take the company forward. Scott Elberg is a former general manager of the radio station WLIB in New York, has been with the network since May of last year.
"Nobody likes filing for bankruptcy," Elberg said in a statement. "However, this move will enable us to concentrate on informing and entertaining our audience during the coming months."