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Stations silenced as air america bounces checks { April 14 2004 }

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   http://www.chicagotribune.com/news/nationworld/chi-040414airamerica,1,1031586.story?coll=chi-news-hed

http://www.chicagotribune.com/news/nationworld/chi-040414airamerica,1,1031586.story?coll=chi-news-hed

Liberal radio stations silenced

By John Cook
Tribune staff reporter

April 14, 2004, 1:45 PM CDT

After just two weeks of broadcasting, Air America Radio, the fledgling liberal talk-radio network featuring Al Franken and Janeane Garofalo, was pulled off the air this morning in Chicago and Los Angeles, the network's second- and third-largest markets, in a dispute over payments for airtime.

Arthur Liu, owner of Multicultural Radio Broadcasting, which owns Air America affiliates WNTD-950 AM in Chicago and KBLA-1580 AM in Los Angeles, said Air America bounced a check and owes him more than $1 million.

Air America and Multicultural had entered into a time brokerage agreement in which the network was essentially renting Multicultural's airtime, Liu said.

"They bounced a check today," Liu said. "It's a default. They have paid only a very small portion of what they owe us." Liu declined to say how much Multicultural is owed, but did say he is holding $1 million in checks that Air America has asked the company not to cash.

"They've been saying, 'We're going to get you the money' for the past two months," Liu said, referring to a security deposit that he said Air America was supposed to have prepaid in advance of its launch. "They're not honoring our agreement."

"That is an outright lie," said Evan Cohen, Air America's chairman, in a statement. "Multicultural Radio Broadcasting's conduct in this matter has been disgraceful.... [I]t is a clear violation of their contractual obligations."

Air America filed a complaint today in New York state Supreme Court charging Multicultural with breaching their contract and seeking an injunction to force Multicultural to restore the Air America broadcast on both stations.

Listeners who tuned into WNTD-950, Air America's Chicago affiliate, Wednesday morning heard Spanish-language talk radio instead of "Morning Sedition" and "Unfiltered," the network's morning talk shows.

A Chicago source familiar with the situation said a Multicultural representative showed up at WNTD's offices this morning, kicked out Air America's lone staffer overseeing the network's feed to the station from New York, switched over to a Spanish-language feed, and changed the locks on the doors.

Liu said the same thing happened at KBLA in Los Angeles.
Copyright © 2004, Chicago Tribune




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