*now playing*
 

News

Judge Approves $200,000 Loan to Napster

A Delaware bankruptcy judge on Monday approved a $200,000 loan to Napster, the failed online song-swapping service, from a company called Napco Acquisition to keep the company afloat until the sale of its assets is completed, according to court filings.

Napco also signed a letter of intent to buy some of Napster’s assets, the court papers said. Napco attorney Suzzanne Uhland at O’Melveny & Myers could not be immediately reached for comment.

Dozens of bidders have expressed interest in buying the assets of the bankrupt online music-swapping site in recent months.

Rick Antonoff, attorney for Napster’s creditors committee, told the Los Angeles Times a final agreement to sell Napster’s assets to the new bidder could be reached in two weeks, when the buyer will be identified.

Preliminary terms call for the bidder to pay $5 million in cash and an undisclosed amount of other consideration to Napster’s creditors in exchange for some of the Redwood City, California-based company’s assets, Antonoff told the paper.

The former file-sharing service, which closed its operations in September, reached a deal late that month with the U.S. Trustee’s office for the appointment of a Chapter 11 trustee to manage its estate.

Napster attracted some 60 million users at its peak, but lost a legal showdown with the world’s largest record companies, which accused the company of copyright infringement. The company filed for bankruptcy earlier this year.

 
COOKIE NOTICE
We utilize cookie technology to collect data regarding the number of visits a person has made to our site. This data is stored in aggregate form and is in no way singled out in an individual file. This information allows us to know what pages/sites are of interest to our users and what pages/sites may be of less interest. See more