Los Angeles – Playlist.com, the music service that filed for
bankruptcy earlier this month, owes the major record labels a combined $25
million, but hopes to emerge from the process and raise a new round of equity
financing, CNET News.com reports. All of the major labels except Sony filed
copyright infringement suits against the service, which allows users to create
and share playlists of streaming Web songs — including songs from unauthorized
sources.
Unable to meet payments on its debts of $16.6 million in licensing
fees to Universal Music, $4.1 million to Warner Music, $3.1 million to Sony
Music, and $2.1 million to EMI, Playlist.com filed for Ch. 11 bankruptcy
protections.
Several of those licensing deals have apparently been terminated, CNET reports, meaning
those labels’ songs will likely disappear from the service.
However,
Playlist.com told the bankruptcy court it plans to “complete a new round
of equity financing,” once it emerges from Ch. 11, to pay its debts to the
labels.
Related Links:
http://news.cnet.com/8301-31001_3-20014495-261.html
http://tinyurl.com/2dxgpnb
(DMW previous coverage)
