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Napster files for Chapter 11 bankruptcy

Posted by CmdrTaco on from the no-surprise-there dept.

Joey Patterson writes "CNN Money reports that Napster has filed for Chapter 11 bankruptcy." Thank god the industry shut them down... now that piracy has been stopped they can all sleep much better.

1 of 438 comments (clear)

  1. Chapter 11 is for protection of their assets by Fly · · Score: 5, Interesting
    The Chapter 11 filing was part of the deal to sell to BMG. It protects Napster from its creditors since I presume BMG didn't want to buy Napster only to have people taking pieces of it while they work towards a transition.

    If you recall, K-Mart has also filed for Chapter 11 bankruptcy to protect them from their creditors while they attemp to reorganize into a profitable company.

    Filing for Chapter 11 bankruptcy does not mean that the company is gone or is no longer operating. In the case of Napster, the great levels of piracy ended long before today.

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