As we listen to the wonderful dearly departed Beverly Sills sing from Rimsky-Korsakov’s lovely ‘Le Coq D’Or, we can discuss today’s bankruptcy of Muzak, that irritant that seems to never go away. It is dead! HAHAHA. What killed it and a number of other things? The iPod. And the desire to see this noxious cultural depravity go away for good. Sirius Radio is dying too, due also to the Ipod. The Ipod made Apple very rich. And millions love it, portable, slender, total control over contents. As an opera lover, this is important to me, of course! Control. Oh–GOLD SHOT UP BY $21 TODAY.
Music and entertainment company Muzak Holdings LLC, which is known for providing background music in stores and hotels, said on Tuesday that it has filed for Chapter 11 bankruptcy protection to restructure its debt.
In documents filed with a U.S. bankruptcy court, the Fort Mill, South Carolina-based company listed assets in the range of $0 to $50,000 and liabilities in the range of $100 million to $500 million…
Muzak, which is majority owned by private equity fund ABRY Partners LLC, said it has sufficient means to support the business during the chapter 11 process.
First, lets go look that the burned out wreck of so many deals that didn’t go through before this denouement. DMX was supposed to merge with Muzak. I found this out via Wikipedia.
DMX has applied to merge with Fort Mill, South Carolina competitor Muzak Holdings LLC, with the resultant combined entity sold to a third-party buyer. TheUnited States Department of Justice has issued a second request for information on the merger.
DMX tried for a year to make a merger possible. It finally died after the buyout takeover market dried up in July, 2007. So, after nearly a year of trying to get more debt so they could merge, DMX gave up. It was delisted when its stocks were less than a dollar and then, it died.
Then, I found the other story here, from 1996. Seems this group went bankrupt back then, too!
(BUSINESS WIRE)–May 15, 1996–DMX Inc. (“DMX”) (NASDAQ:TUNE) has Wednesday announced a series of transactions with Tele-Communications Inc. (TCI, symbol “TCOMA”) which will increase the stake in DMX held by TCI and its affiliates from approximately 14 percent to approximately 45 percent.
Upon completion of all of the transactions, DMX will have approximately 59.6 million shares outstanding.
DMX will complete the previously announced merger with TCI-Euromusic Inc., a subsidiary of TCI. Through the merger DMX will acquire the 49 percent interest in DMX-Europe NV (DMX-E) held by Telecommunications International Inc. (symbol “TINTA”), in exchange for 10.8 million shares of common stock of DMX. TCI holds approximately 82 percent of the outstanding stock of TINTA, which is a public reporting company.
Now, to the hedge fund that owns these fun things:
ABRY maximizes the value of its investments by concentrating on certain industry sectors where we have substantial operating and investment experience. Because ABRY brings deep industry insight to the investment process, we are able to quickly understand key issues, accurately assess opportunity, value and risk, and bring relevant information to bear. Simply put, we partner with skilled executives and invest significant capital to help build stronger companies that become industry leaders.
ABRY Partners is a media-focused private equity firm with more than $1.7 billion in capital under management. ABRY typically invests $20 million to $100 million of equity or $10 million to $50 million of mezzanine capital in a company.
Current portfolio companies include Atlantic Broadband, Citadel Communications, Commonwealth Business Media, Consolidated Theaters, Hanley Wood, Navtech and Penton Media among others.
ABOUT ABRY Partners LLC
Our involvement in the operations of diverse media companies enables us to make valuable contributions as board members. In addition, our extensive, long-standing relationships with many different stakeholders in the media and finance businesses often allow ABRY to contribute significant value to our operating partners. Equally important, ABRY’s long track record makes us a known quantity in the media industry. Our philosophy is to consistently deliver all that we promise or more, never less. We have never failed to close on a committed facility, and ABRY is committed to being fair and reliable partners.COMPANY VITALS
Number of Employees: 20 – 49 Yearly Revenues: 10MM – 20MM Available Jobs (As Listed on Company Website): N/A
Not a large group. And not huge revenues. This means, small failures has big results.
July 12, 2007 — (WEB HOST INDUSTRY REVIEW) — Colocation and data center operator CyrusOne (cyrusone.com) announced on Wednesday it has been acquired by media and communications private equity firm ABRY Partners (abry.com). Since 2001, CyrusOne has built a strong presence in the high availability colocation and managed data center services marketplace. As a leader in high availability, high density data center services, providing managed hosting, colocation and managed IT services, CyrusOne has helped businesses optimize returns on technology investment while ensuring application availability, data security and superior IT performance.
The completion of this acquisition enables CyrusOne to accelerate its expansion, while its existing management team will continue its leadership of the company. Signal Hill Capital Group initiated and advised CyrusOne in this transaction.
They bought this turkey just 5 days before the Japanese carry trade markets closed for good. And all the deals cooking were burned. Back to the Muzak, we see that it was piled up with debts. Supposedly, like all the other enterprises, was planning on paying off these buy out burdens by somehow making lots of money. These deals, alas, deprive businesses of profits and encourage overspending where it may not have much future profitability. Such as funding the president’s new car, mistresses or yachts.
Many businesses are drowning in debt. If an old dame like Muzak goes under, what about the upstarts, the rock and roller businesses? Well, guess what!
Looks like several radio corps have been warned this year and now Citadel Broadcasting has been threatened with a de-listing. The company announced it received a notice that its stock “has fallen below the continued listing criteria related to minimum share price for the NYSE.” In addition, Citadel states “subject to compliance with the NYSE’s other continued listing standards, the Company’s common stock will continue to be listed on the NYSE. The Company intends to cure the deficiency and to return to compliance with the NYSE continued listing requirements.”
Sirius XM Radio Inc (SIRI.O: Quote,Profile, Research) has been working with its advisers to prepare for a possible bankruptcy filing, the New York Times reported on its website on Tuesday, citing people close to the company.
The move could put pressure on satellite television company EchoStar Corp (SATS.O: Quote, Profile, Research), which reportedly holds a substantial amount of Sirius XM debt. The Wall Street Journal reported Monday that EchoStar chief Charles Ergen made an offer to take control of the satellite radio company late last year, but he was rebuffed.
11¢ a share! No wonder they are being delisted. 0¢ is bankruptcy, of course. Sirius is in serious trouble due mostly to the iPod. The allure of shock jocks couldn’t compete with the total control iPod. My own children are proof of this. Whatever they want, they download from the internet and then, their cars have iPod plug-ins so we can all enjoy the music from large speakers. All over the place, I see people wearing iPod earpieces. Technology always overwhelms older business plans.
Now to the BIG FISH. Citigroup is going down, hard.
Citigroup’s Pandit Vows ‘Profitable Investment’ for Taxpayers
Citigroup Inc. Chief Executive Officer Vikram Pandit, summoned by Congress to explain his bank’s use of $45 billion of bailout funds, vowed to “make this a profitable investment for the American people.”
Pandit, 52, made the remarks in a draft of testimony he plans to deliver tomorrow at a hearing before the U.S. House of Representatives Committee on Financial Services. He’s among the CEOs of eight banks, including JPMorgan Chase & Co. and Bank of America Corp., scheduled to testify at the Washington hearing on the $700 billion Troubled Asset Relief Program.
“You will look back on it and know it was the right decision for our nation’s economy and for American taxpayers,” Pandit said in the draft, which was obtained by Bloomberg News. “My goal is to make this a profitable investment for the American people as soon as possible.”
Where is Rubin? Busy trying to save the economy by giving all our money to the bankrupt bankers, no doubt. This is one man I want to see off of Obama’s team and into a prison. Pandit is the fall guy after his two predecessors ran off to greener pastures. I seriously doubt that he can do what Muzak couldn’t do. Stocks in Citigroup are now at barely above three bucks. This is penny stock. When were we forced to buy into Citigroup?
Around when it was about $24 a share? And pray tell, how will we get this back? By capitalizing this gnome mess to the tune of over $30 billion? And what? In 20 years we will get it all back with no interest? And if it goes under, we lose everything, right? Citigroup is being eaten alive, not just by deadbeat homeowners, look at just today’s news abot bankruptcies:
GGP Faces Thursday Deadline For $900M Loan
Real Estate Finance and Investment, NY – 6 hours ago
General Growth Properties faces a deadline on Thursday to repay a $900 million loan backed by two Las Vegas shopping malls. The lenders include Citigroup, …GGP
It Holding SpA Files for Bankruptcy, Saks Reels from Fall …
Wall Street Journal Blogs, NY – Feb 9, 2009
A Citigroup Inc. spokeswoman declined to comment Friday. AP Baugur, the Icelandic retail investor, faces another week of uncertainty as potential buyers …SKS
Citigroup Sells Mortgage Rights to Wilbur Ross Unit
Bloomberg – Feb 5, 2009In an interview, Ross said the Citigroup loans that American Home will service have a facevalue of $37 billion and include subprime and Alt-A mortgages. …C – OTC:AHMIQ
A New Administration, Tired Old Policies
Center for Research on Globalization, Canada – Feb 7, 2009
In his January 26 commentary, financial expert and investor safety advocate Martin Weiss warns that Bank of America and Citigroup “are on life support,” and …
The rise and (almost) fall of America’s banks Martinsburg Journal
all 222 news articles »
General Motors Corp. and Chrysler LLC may have to be forced into bankruptcy by the U.S. government to assure repayment of $17.4-billion (U.S.) in federal bailout loans, a course of action the auto makers claim would destroy them.U.S. taxpayers currently take a backseat to prior creditors, including Citigroup Inc., JPMorgan Chase & Co. and Goldman Sachs Group Inc., according to loan agreements posted on the U.S. Treasury’s website. The government has hired a law firm to help establish its place at the front of the line for repayment, two people involved in the work said last week.
The government bail out of GM and Chrysler is bailing out Citigroup, Goldman Sachs, JP Morgan and Cerebus, all of whom should be crushed, not saved, particularly the eldest of this group of gangsters: JP Morgan, the founder of the Federal Reserve. They need to be bailed out. The bankruptcies we are seeing in the corporate and business world are just beginning. Remember how this progressed: while stocks were soaring and while bankers were making bigger and bigger ‘deals’ house buyers began to go bankrupt. Then, the Japanese carry trade suddenly lurched to a halt and all the biggest deals in history were left stalled out in the laps of the banking gnomes!
Since then, they have been desperate to unload these turkeys only all the bad tranches built on homeowners with ARM loans, suddenly began to crash. The swift end of Japanese credit brought all global commerce to a head. A violent surge of inflation shot through the system due to all the hedge funds and banker suddenly switching over to commodity markets to make money. This, in turn, caused the consumers to lose their money on necessities so the buying of other goods collapsed and now, businesses are collapsing and all the deals, every blasted one of them, will cascade into the same pit because no one can buy anything, anymore. This is why our government wants to hand out money. But due to the Democrats being too weak, to scatterbrained and no one in any party being rational about the nature of this collapse [the ending of the Japanese carry trade coinciding with the US building up too much debt] is not understood.
So one rescue after another will be attempted. None will work unless we first shut down all of these bankrupt banks and arrest the guys who did this [Rubin, this is you I am talking about here] and we start all over again, with new rules and regulations that work.
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