Global Music Delaware Bids For Death Row
September 2, 2008 at 10:22 AM (PT)
The dance to pick up the remains of DEATH ROW RECORDS may be changing states, as GLOBAL MUSIC GROUP of DELAWARE submitted an offer to the Trustee in the rap label's bankruptcy proceeding in LOS ANGELES to acquire its Assets for the sum of $24 million if the bid of GLOBAL MUSIC GROUP OF NEW YORK (GMG NEW YORK) is deemed terminated by the Court. Last week, the Trustee for the bankruptcy estate filed to terminate the rights of GMG NEW YORK because they had not yet successfully completed the transaction (NET NEWS, 8/27).
On JUNE 24th, 2008 the Court awarded the winning bid in the bankruptcy sale of the assets of Death Row Records for $24 million to the party that applied to bid for the assets on JUNE 10th. GMG Delaware has contended it was the rightful bidder, but the Court identified GMG NEW YORK in error.
After GMG DELAWARE filed suit against GMG NEW YORK, the parties reached a settlement on August 6th, 2008 which contemplated GMG NEW YORK financing the acquisition and sharing equity with GMG DELAWARE.
"Until today, GMG DELAWARE has been content to await GMG NEW YORK's funding of the deal and has not exercised its rights directly," GMG DELAWARE SVP/General Counsel MICHAEL J. COLLESANO, Esq. said. "At this time, however, GMG DELAWARE is not confident in GMG NEW YORK's ability to finance the transaction, GMG NEW YORK has denied GMG DELAWARE any access to information concerning their alleged financing, and the Trustee has moved to terminate GMG NEW YORK's rights to the acquisition ... Independent of GMG NEW YORK, GMG DELAWARE has obtained a solid Funding Commitment for the full purchase price and has shared its funding commitment with the Trustee."