Judge Approves $200,000 Loan To Napster
A Delaware bankruptcy judge yesterday (Oct. 21) approved a $200,000 loan to bankrupt online music-swapping site Napster from a company called Napco Acquisition. The funds will help keep the company afA Delaware bankruptcy judge yesterday (Oct. 21) approved a $200,000 loan to bankrupt online music-swapping site Napster from a company called Napco Acquisition. The funds will help 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. A Napco attorney could not be immediately reached for comment.
Dozens of bidders have expressed interest in buying the assets of the bankrupt Napster 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, Calif.-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 bankruptcy trustee to manage its estate. Napster attracted some 60 million users at its peak, but lost a host of legal showdowns with the world's largest record companies, who accused the company of wide-scale copyright infringement.
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