- Cape fines contractor $1,100 a day for street-project delays; contractor blames utility relocations (5/18/17)13
- Deputies: Man, woman tried to arrange killing of his estranged wife (5/21/17)1
- Attorney general seeks bond revocation for embattled sheriff (5/17/17)3
- I will not be silenced (5/16/17)4
- Tractors owners to open restaurant in new Drury Plaza Hotel (5/15/17)
- Cape police say man assaulted, kidnapped girlfriend (5/21/17)2
- Mississippi County sheriff fights efforts in court to remove him from office (5/21/17)4
- Attorney general to review request to probe Oran timecard allegations; claims spark denials on Facebook (5/16/17)2
- Man accused of using stolen RV to break into airport (5/16/17)
- Cape man accused of shooting a woman in Jackson (5/21/17)
Music service Napster files for Chapter 11 bankruptcy
SAN FRANCISCO -- Napster Inc. filed for Chapter 11 bankruptcy protection Monday, seeking court protection from creditors as music industry heavyweight Bertelsmann AG follows through on a plan to take over what's left of the company.
The Internet music-swapping service has agreed to sell its assets to Bertelsmann for $8 million in cash and the assumption of certain liabilities, according to papers filed in a Wilmington, Del., court.
The liabilities include any new loans to Napster and forgiveness of the $91 million Bertelsmann loaned Napster before the filing, Napster's bankruptcy lawyer Rick Cieri said.
After the bankruptcy process is complete, Napster will sell itself to Bertelsmann, unless another company submits a higher bid, Cieri said.
"The Chapter 11 process is going to be utilized to maximize the value of Napster, whether by a sale to Bertelsmann or someone else," Cieri said.
Calls to a Napster spokeswoman were not returned Monday.
Bertelsmann said May 17 it would buy Napster for $8 million -- slightly more than half what it had previously offered to purchase the company -- to pay Napster's creditors as part of a financial reorganization. Napster's board rejected that offer.
As of April 30, Napster had about $7.9 million in assets and about $101 million in liabilities, according to the filings.
The bankruptcy filing is the swan song for a company that three years ago set off a frenzy of online song-swapping that attracted millions of users, as well as the ire of the recording industry, which sued for copyright infringement.
At its peak, Redwood City-based Napster boasted some 60 million users.