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.
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D2F platform Musictoday files for bankruptcy
Delivery Agent, the parent company of direct-to-fan ecommerce site Musictoday, has gone into administration.
The San Francisco-based company’s founder and CEO, Mike Fitzsimmons, describes the move – which, like SFX Entertainment, sees it file for chapter-11 bankruptcy protection in the US bankruptcy court of Delaware – as a “very positive development for our company and our customers”.
“Through these proceedings we’re initiating a process that preserves company value, allows the company to reorganise its business affairs and establishes a necessary foundation for future growth and profitability,” adds Fitzsimmons (pictured). The company will continue to trade as normal until a buyer is found.
“Through these proceedings we’re initiating a process that preserves company value, allows the company to reorganise its business affairs and establishes a necessary foundation for future growth and profitability”
In addition to merch marketplace Musictoday, which Delivery Agent purchased from Live Nation in August 2014, also for sale are promotional marketing company Clean Fun and T-commerce platform Shop the Shows (trading as ShopTV).
In a statement, Delivery Agent – represented by financial advisors Matthew English and Howard Bailey, of Arch + Beam, and financial advisors Keller & Benvenutti and Pachulski, Stang, Ziehl & Jones – affirms its commitment to “maximising value for all stakeholders” and says it expects the sale to be completed “before the end of the year”.
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