Headlines

Muzak Files for Bankruptcy

Company debt has overwhelmed assets, but it says it can support itself through a reorganization

Published

15 years ago

February 11, 2009

VMSD Staff

Muzak Holdings LLC (Fort Mill, S.C.), the company known as the maker of “elevator music,” has filed for Chapter 11 bankruptcy protection. The filing said the company, which also provides in-store music delivery systems for retailers, has total debt of between $100 million and $500 million and assets of less than $50,000. It filed to try to refinance some of its debt.

The company said it expects to continue to operate as is. A statement said it has “sufficient means” to support itself through a bankruptcy reorganization.
The company got an extension last month on $105 million in debt, it said in a statement. The extension has run out.

Among its biggest unsecured creditors are U.S. Bank NA, Universal Music Enterprises, EMI Capital Records, AT&T, Dish Network, The American Society of Composers, Authors and Publishers (ASCAP), Sony Music, BMG Film & Television Music, United Parcel Service and Virgin Records.

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