Internet radio firm in bankruptcy

Friday, Nov. 10, 2000 | 11:49 a.m.

THE ASSOCIATED PRESS

PORTLAND, Maine -- BroadcastAmerica.com has filed for protection from its creditors under Chapter 11 of U.S. bankruptcy law as the online broadcaster pursues a merger.

John Brier, BroadcastAmerica president, said venture capital has dried up because of the slump in the financial markets, triggering a revenue shortage.

In late August, KTNV Channel 13, the ABC television network affiliate serving Las Vegas, signed an agreement with BroadcastAmerica.com to place the station's content on the Internet. The agreement also enables Channel 13's www.yourinsidelasvegas.com Internet site to use BroadcastAmerica content.

Station officials said Thursday the bankruptcy filing has not disrupted programming between the companies.

BroadcastAmerica said it was getting an immediate loan of up to $1 million as part of its pending merger with New Jersey-based SurferNETWORK.com, a year-old online marketing and radio company. SurferNETWORK will try to set up as much as $7 million in longer-term funding by Dec. 1 in return for a 50 percent stake and the right to name four of the seven board members.

Launched two years ago, BroadcastAmerica transmits 750 radio and 70 television stations over the Internet. SurferNETWORK has technology enabling Web-based broadcasters to target advertising to specific audiences.