Warner Music Group Wants Death Row Assets
February 5, 2008 at 5:41 AM (PT)
DEATH ROW RECORDS wants to sell its music-related assets, including the rights to recordings from rappers TUPAC SHAKUR, DR. DRE and SNOOP DOGG, for $25 million to WARNER MUSIC GROUP, subject to higher bids at an auction. The court-appointed administrators running the bankruptcy estates of DEATH ROW RECORDS and owner MARION "SUGE" KNIGHT have asked the U.S. Bankruptcy Court in LOS ANGELES to approve the bidding procedures and leading bid at a FEBBRUARY 26th hearing.
The offer from WARNER to purchase all music-related assets that belong to DEATH ROW and KNIGHT "will result in the highest or best collective recovery for the estates," said R. TODD NEILSON, the Chapter 11 trustee of DEATH ROW RECORDS' estate, in court documents filed Friday.
NEILSON said he has spent more than a year analyzing the record company's financial information to determine whether it would be best to pursue a plan of reorganization or a sale of the company's assets. He said significant "gaps" in the company's financial and business records that remain have led him to decide in favor of a sale.
Competing bidders must initially exceed WARNER's offer by at least $1 million, and subsequent bids must increase by increments of at least $100,000, NEILSON requested. He wants to pay WARNER a break-up fee of $500,000 plus reimbursement of up to $250,000 in expenses if its bid doesn't win at auction.