Sonicblue seeks bankruptcy protection

**skynet** · 03-21-2003, 09:58 AM

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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, 10:11 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, 12:07 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, 03:32 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, 03:40 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, 06:31 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, 08:09 PM

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

**Speedfreak** · 03-21-2003, 10:36 PM

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, 12:54 AM

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.