Musictoday finds a buyer
Musictoday, the formerly Live Nation-owned direct-to-fan (D2F) platform which filed for bankruptcy in September, has found a buyer in the form of one of its lenders, Hillair Capital Investments.
Investment firm Hillair was last month accused of seeking to acquire Musictoday and parent company Delivery Agent at a less-than-competitive price, to the detriment of other creditors. However, no other buyers have come forward to match its offer – which wipes out close to US$20 million of Delivery Agent’s debt – and an agreement was reached yesterday, between Hillair and the previously hostile committee of unsecured creditors.
“The parties acted in good faith with regards to the sale process”
In a court filing approving the sale, Delaware bankruptcy judge Laurie Selber Silverstein writes that he’s confident both parties “acted in good faith with regard[s] to the sale process”.
San Francisco-based Delivery Agent bought Musictoday from Live Nation in August 2014.
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Musictoday creditors want more time to sell
A number of creditors of bankrupt direct-to-fan platform Musictoday have objected to the swift sale of its assets, saying plans to offload the company by 8 November don’t allow for a thorough bidding process.
Under the terms of its bankruptcy agreement, Musictoday’s parent company, Delivery Agent – which went into administration late last month – is to auction off promotional marketing business Clean Fun by 14 October and all other assets, including Musictoday, by 8 November. The current timeline, says the official committee of unsecured creditors, is “simply too accelerated to ensure that the sale process will garner maximum value for the estates by reaching all potential bidders”.
“The timeline the debtors propose is simply too accelerated to ensure that the sale process will garner maximum value”
The committee, in an objection filed last Friday in the Delaware bankruptcy court, further alleges major lender Hillair Capital Investments is seeking to acquire the company’s assets at a less-than-competitive price. “As proposed, the bidding procedures are very likely to set this case on an inescapable course that turns substantially all of the debtors’ assets over to Hillair, with no benefit whatsoever to general unsecured creditors of the debtors’ estate,” it said.
San Francisco-based Delivery Agent bought merch marketplace Musictoday from Live Nation in August 2014.