[Dixielandjazz] Elevator Music in trouble?

[Stephen G Barbone]

Things are so bad in the business of music that elevator music is in  
trouble. <grin> What now?
Hey, maybe we could squeeze a trio into each elevator?
Cheers,
Steve Barbone

February 11, 2009 - NY TIMES - Associated Press
Muzak Files Chapter 11 to Refinance Debt

Muzak Holdings, the maker of background music heard in elevators,  
filed for Chapter 11 bankruptcy protection on Tuesday.

The company had a heavy debt load, and it filed to try to refinance  
some of its debt. In a court filing, the company listed its total debt  
at $100 million to $500 million.

The filing listed assets of less than $50,000, but a company  
spokeswoman, Meaghan Repko, said total assets were about $320 million.  
That included the Muzak operating company, she said, which also filed  
for bankruptcy. She declined to provide a more exact figure for the  
company’s total debt.

Many of Muzak’s biggest creditors are music companies that license  
songs for use on Muzak playlists. While the company is known as the  
creator of elevator music, its business is now more focused on  
creating playlists for use in retail stores, installing professional  
sound systems and providing other services.

Muzak, which is based in Fort Mill, S.C., filed for protection in the  
United States Bankruptcy Court in the District of Delaware in  
Wilmington.

The company expects to continue to operate. A statement said it had  
“sufficient means” to support itself through a bankruptcy  
reorganization.

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.

Kirkland & Ellis was hired as the company’s bankruptcy law firm.  
Moelis & Company will serve as the financial adviser.