I was reading the latest news about the bankruptcy filing of Muzak, the elevator music people, and the new merged company of Sirius XM, the satellite radio people. Sirius XM has not filed Chapter 11 bankruptcy just yet but it looks like they will any day now.
It has always struck me as odd that we applaud business for using bankruptcy as a responsible way to restructure their debt but we look down on consumers when they need to do the very same thing.
If it is a smart move for a business run by high paid executives that know what to do, then why isn’t it a right move for consumers when faced with hard time and financial troubles?
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The lesson to be taken from this is that if you are facing hard times, bankruptcy might be the best way for you to restructure your debt. I urge you to go and meet with a bankruptcy attorney and get a free bankruptcy consultation just like companies like Muzak. However, I doubt their meeting wasn’t free.
Muzak apparently owe a s*** load of money to music companies that license songs for use on Muzak playlists.
Among its biggest unsecured creditors is U.S. Bank, which is owed $371 million according to a court filing.
The American Society of Composers, Authors and Publishers is owed $213,020, the filing said.
Other top unsecured creditors include vendors like Universal Music Enterprises, owed $349,321; EMI Capital Records, $320,323; AT&T, $257,384; and Dish Network, $251,276.
Sony Music, BMG Film and Television Music, United Parcel Service and Virgin Records were also listed among the unsecured creditors.
And it was the Dish Network listing that tied in the Sirius XM pending bankruptcy. Apparently, the threat of a bankruptcy for Sirius XM could force Dish Network (DISH) and EchoStar (SATS) CEO Charlie Ergen to make a bid for the company. Ergen recently acquired a majority of a $300 million tranche of Sirius debt that matures next Tuesday.