Oh Yeah! Beyond Oblivion Bankruptcy Debt Approaches $500 Million

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They say to embrace failure, not give it a bear hug!

According to bankruptcy court documents recently filed in New York, Beyond Oblivion carries as much as $500 million in debt on the high end, and at least $100 million to start.

Sony Music Entertainment and Warner Music Group are listed as chief creditors in this meltdown.  Each are owed $50 million in unsecured ‘trade debt,’ though Beyond Oblivion assets are listed at less than $10 million.

Those ‘trade debts’ are probably licensing costs, owed upfront or otherwise, and part of a business model that started imploding almost immediately.  Beyond Oblivion never got to market, folding over Christmas with as much as $87 million in collective financing.  That financing estimate has since been lowered, based on obviously-missed benchmarks.

Those benchmarks were instituted by investors like News Corp, the Wellcome Trust and Allen & Co., among others.  And this never ends: those financiers are throwing an estimated $750,000 to ‘wind-down’ the operation.

The concept, in a nutshell, involved an ecosystem of devices pre-loaded with music content, with appropriate surcharges baked into the cost of manufacturing and buying the devices.