Creditors of Napster are likely to challenge German media giant
Bertelsmann’s position as a secured creditor in any sale of the
bankrupt file-swapping service’s assets, according to Reuters.27 Sep 2002
According to the Reuters report citing “sources close to the proceeding,” more than 12 unsecured creditors, including a Barcelona-based adult entertainment company, are expected to initiate “further litigation” regarding Bertelsmann’s claims.
A bankruptcy judge in a Delaware court last month blocked Bertelsmann’s bid to buy Napster assets. Bertelsmann has invested $85 million in Napster and had offered an additional $8 million as a bidder.