LOS ANGELES, Aug. 29 /PRNewswire/ -- Global Music Group, Inc. a corporation incorporated in the State of Delaware (GMG Delaware) today submitted an offer to the Trustee in the Death Row Records bankruptcy proceeding in Los Angeles, California to acquire the Assets of Death Row Records 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.
On June 24, 2008 the Court awarded the winning bid in the bankruptcy sale of the assets of Death Row Records for $24 million dollars to the party that applied to bid for the assets on June 10, 2008. 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 6, 2008 which contemplated GMG New York financing the acquisition and sharing equity with GMG Delaware.
Michael J. Collesano, Esq., GMG Delaware's General Counsel and Senior Vice President explained, "Until today, GMG Delaware has been content to await GMG New York's funding of the deal and has not exercised its rights directly. 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," Collesano said.
"We have every belief that GMG Delaware can and will fund the acquisition if provided the opportunity by the Trustee and with consent of the Court, and we feel that our original bid was misidentified in good faith. We hope GMG New York raises the funds necessary to close the deal. However, in lieu of the Trustee's present position and without information from GMG New York, GMG Delaware has our own funds to close and are offering to purchase the Assets for the same price if GMG New York's rights are deemed terminated."
"GMG Delaware is confident that it can complete the purchase and that its bid represents the best return to the creditors of the bankruptcy estate for the Trustee."
GMG Delaware and Alliance stand ready to satisfy the Trustee and the Court that its funds are available and deliver them within a commercially reasonable and limited period of time.
Source: Global Music Group, Inc. of Delaware
CONTACT: Michael Collesano, Esq. of Global Music Group, Inc. of
Delaware, +1-646-221-2284, mcollesano@gmail.com
