Bankruptcy Asset Sales

Napster has already filed for Chapter 11 in United States Bankruptcy Court in Delaware. This move occurred after the inability to strike a deal with the recording industry and increasing legal bills have caused Napster’s resources to dwindle. This filing also occurs at a time where Bertelsmann will secure the company for an inexpensive price. The determination of whether Bertelsman’s bid was one of equity or a loan will determine whether the bidding process will be commenced another time or whether or not Bertelsmann has possession of the company. This determination will decide how much Napster’s creditors can recover.

The following questions have been addressed in this article:

What occurred at the auction sale?
What will the hearing determine?

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