Report: Financing For Death Row Purchase Set
August 27, 2008 at 5:13 AM (PT)
GLOBAL MUSIC GROUP INC., the NEW YORK-incorporated company vying to purchase the assets of bankrupt rap label DEATH ROW RECORDS, said yesterday it has lined up financing to complete the troubled deal, reports TODAY's NEW YORK POST. The company, headed by SUSAN BERG, has signed a letter of intent to sell itself to MEDIATECHNICS CORP., a LOS ANGELES-based CD and DVD manufacturer.
MEDIATECHNICS intends to cover the balance of the $24 million owed to trustees representing the estate of DEATH ROW RECORDS and its founder MARION SUGE KNIGHT, JR.
However the merger deal is no guarantee a purchase of the DEATH ROW assets will happen.
GLOBAL MUSIC and MEDIATECHNICS, headed by RICHARD WILSON, are trying to salvage the DEATH ROW pact, after the estate on FRIDAY terminated the agreement claiming lack of payment two months after the auction.
In a complaint for declaratory and injunctive relief, the DEATH ROW and KNIGHT estates asked the court to declare that since they haven't been paid in a timely fashion they are free to shop the catalog, which contains works by seminal gangster rapper TUPAC SHAKUR, DR. DRE and SNOOP DOGG, to other interested parties.
Meanwhile, MEDIATECHNICS' purchase of GLOBAL MEDIA remains contingent upon its ability to close the deal for DEATH ROW. The company said yesterday it has a commitment letter from an undisclosed lender to fund the transaction.