Sonicblue seeks bankruptcy protection

skynet · 03-21-2003, 10:58 AM

http://rss.com.com/2100-1047-993647....feed&subj=news

By Jim Hu
Staff Writer, CNET News.com
March 21, 2003, 8:20 AM PT

Hardware maker Sonicblue has filed for Chapter 11 bankruptcy protection and intends to sell its ReplayTV digital recorder and Rio MP3 player businesses.
The bankruptcy notice, filed Friday with the U.S. Bankruptcy Court in San Jose, Calif., is intended to let Sonicblue continue operations long enough to sell its main subsidiaries. The company plans to complete those sales by April and then to open the bidding for its remaining assets.

"In the end, we and our financial advisers have concluded that the best outcome for our creditors and our employees is to sell our businesses to better-heeled owners," Gregory Ballard, Sonicblue's CEO, said in a statement.

So far, Sonicblue has signed nonbinding letters of intent with Japanese consumer electronics companies D&M Holdings and Marantz Japan to sell its ReplayTV and Rio subsidiaries for $40 million. The company also has entered into a definitive agreement to sell its GoVideo business to Opta Systems for $12.5 million.

Sonicblue has retained Houlihan Lokey Howard & Zukin Capital as its financial adviser and Pillsbury Winthrop as its legal counsel.

The bankruptcy filing caps an unsuccessful attempt by Sonicblue to find potential buyers or investors to reduce its debt. The company has been fighting a lawsuit by the entertainment industry over technology in its ReplayTV device that lets people skip commercials.

Sonicblue recently settled a patent suit with TiVo, its digital recording device rival.

chadlnc · 03-21-2003, 11:11 AM

Hard to say, but I would be a little concerned if you have a rebate to send out. I wonder if someone will be picking up and offering service on the units. If not, they aren't going to be worth a whole lot.

ray · 03-21-2003, 01:07 PM

if a company is asking for bankruptcy protection, good luck on getting rebates or service. I would cancel your order and start looking into TiVo

sbp · 03-21-2003, 04:32 PM

Boy, that Ballard character sure has the midas touch. First 3dfx, and now SONICblue.

I salute you Greg Ballard...GG!

Speedfreak · 03-21-2003, 04:40 PM

I just got my $50 rebate a week ago for the unit I bought in October. I didn't send for the rebate right away, though.

I sure hope they get someone to take to continue the service.

chadlnc · 03-21-2003, 07:31 PM

I read it is Denon and Marantz (I think I spelled that right) that is taking over the recording section of the company.

Apex · 03-21-2003, 09:09 PM

Yeah, D&M may take them over. That would be sweet.

Speedfreak · 03-21-2003, 11:36 PM

Quote:

Originally posted by chadlnc
I read it is Denon and Marantz (I think I spelled that right) that is taking over the recording section of the company.

Wow.. that would be cool. They are giving names of actual possible buyers. This is good.

Speedfreak · 03-23-2003, 01:54 AM

Quote:

Originally posted by DarkFury
Well... if they do go to D&M, maybe they'll offer up another deal in the future. But until then, I just think that I'm gonna stay far far away from this.

Well, I'm hoping it won't even discontinue service at all. If it does, I am sure there will be someone out there who creates a program for it to download a guide from tvguide.com or something. Seeing as it does have an ethernet jack and all.

GilbertsGrape · 03-23-2003, 09:03 PM

speaking of pvr's
is there any way to make one out of an old pc for free or close to it?

GilbertsGrape · 03-24-2003, 02:13 PM

for the cost i would brobably be better off with a TiVO/ReplayTV

Speedfreak · 03-24-2003, 11:52 PM

I have a feeling ReplayTV will continue now.

03-21-2003, 10:58 AM	#1
skynet Lieutenant Commander Join Date: Oct 2001 Posts: 523	Sonicblue seeks bankruptcy protection http://rss.com.com/2100-1047-993647....feed&subj=news By Jim Hu Staff Writer, CNET News.com March 21, 2003, 8:20 AM PT Hardware maker Sonicblue has filed for Chapter 11 bankruptcy protection and intends to sell its ReplayTV digital recorder and Rio MP3 player businesses. The bankruptcy notice, filed Friday with the U.S. Bankruptcy Court in San Jose, Calif., is intended to let Sonicblue continue operations long enough to sell its main subsidiaries. The company plans to complete those sales by April and then to open the bidding for its remaining assets. "In the end, we and our financial advisers have concluded that the best outcome for our creditors and our employees is to sell our businesses to better-heeled owners," Gregory Ballard, Sonicblue's CEO, said in a statement. So far, Sonicblue has signed nonbinding letters of intent with Japanese consumer electronics companies D&M Holdings and Marantz Japan to sell its ReplayTV and Rio subsidiaries for $40 million. The company also has entered into a definitive agreement to sell its GoVideo business to Opta Systems for $12.5 million. Sonicblue has retained Houlihan Lokey Howard & Zukin Capital as its financial adviser and Pillsbury Winthrop as its legal counsel. The bankruptcy filing caps an unsuccessful attempt by Sonicblue to find potential buyers or investors to reduce its debt. The company has been fighting a lawsuit by the entertainment industry over technology in its ReplayTV device that lets people skip commercials. Sonicblue recently settled a patent suit with TiVo, its digital recording device rival.

03-21-2003, 11:11 AM	#2
chadlnc Lieutenant Commander Join Date: Mar 2001 Location: North Carolina Posts: 947	Hard to say, but I would be a little concerned if you have a rebate to send out. I wonder if someone will be picking up and offering service on the units. If not, they aren't going to be worth a whole lot. __________________ "We're just patriots against an unjust law. Just like all those guys in prison." - Homer J. Simpson

03-21-2003, 04:40 PM	#5
Speedfreak Fleet Admiral Join Date: Feb 2000 Location: I am here, so there I am. Posts: 8,027	I just got my $50 rebate a week ago for the unit I bought in October. I didn't send for the rebate right away, though. I sure hope they get someone to take to continue the service. __________________ Call me Fleet Admiral §pêêÐƒrêák™! Go get me some coffee. CoolSpeed

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03-21-2003, 01:07 PM	#3
ray captain awesome Join Date: Jan 2003 Posts: 7,054	if a company is asking for bankruptcy protection, good luck on getting rebates or service. I would cancel your order and start looking into TiVo

03-21-2003, 04:32 PM	#4
sbp Chief of Naval Operations Join Date: Dec 1999 Posts: 11,037	Boy, that Ballard character sure has the midas touch. First 3dfx, and now SONICblue. I salute you Greg Ballard...GG!

03-21-2003, 07:31 PM	#6
chadlnc Lieutenant Commander Join Date: Mar 2001 Location: North Carolina Posts: 947	I read it is Denon and Marantz (I think I spelled that right) that is taking over the recording section of the company.

03-21-2003, 09:09 PM	#7
Apex Can you hear me now? Join Date: Dec 1999 Location: Here Posts: 5,506	Yeah, D&M may take them over. That would be sweet.

03-23-2003, 09:03 PM	#10
GilbertsGrape Captain Join Date: Sep 2000 Location: You can’t get there from here, USA Posts: 1,797	speaking of pvr's is there any way to make one out of an old pc for free or close to it?

03-24-2003, 02:13 PM	#11
GilbertsGrape Captain Join Date: Sep 2000 Location: You can’t get there from here, USA Posts: 1,797	for the cost i would brobably be better off with a TiVO/ReplayTV

03-24-2003, 11:52 PM	#12
Speedfreak Fleet Admiral Join Date: Feb 2000 Location: I am here, so there I am. Posts: 8,027	I have a feeling ReplayTV will continue now.

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