Ontario, Canada-based Mood Media and multiple affiliated Debtors filed for Chapter 15 protection with the U.S. Bankruptcy Court in the Southern District of New York, lead case number 17-11413. The Company, which provides retail-based music entertainment services, is represented by Joshua A. Sussberg of Kirkland & Ellis.
The Company also filed an Arrangement Agreement in Canada, under which it is seeking to restructure via a debt for equity conversion that will provide compensation for its unsecured creditors and leave other bondholders unimpaired.
Discussing recent events, Michael F. Zendan, Mood Media’s executive vice president and general counsel, explains, “Unauthorized copies and piracy have contributed to the decrease in the volume of legitimate sales of music and video content and services and have put upward pressure on the price of products sold through legitimate sales channels.”
In 2011, Mood Media purchased Muzak Holdings following Muzak Holdings February 2010 emergence from Chapter 11 protection. Mood Media recently indicated pre-petition assets of $594 million.
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