Rdio exclusivity extended under deal with committee, secured parties

By Caroline Salls

Pittsburgh, Feb. 25 – Rdio, Inc.’s exclusive periods for filing a Chapter 11 plan of reorganization and soliciting votes on the plan were extended under a stipulation with its official committee of unsecured creditors and pre-bankruptcy secured parties, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of California.

Rdio’s exclusive plan-filing period was extended to April 4 under the stipulation and the solicitation period to June 3.

In addition, the committee waived its right to seek termination of the exclusivity periods. The committee’s challenge deadline was extended to April 4.

For their part, the pre-bankruptcy secured parties agreed not to file any contested matter or adversary proceeding seeking to recover any sale proceeds before April 4.

Last week, the committee asked the court to terminate the company’s exclusive periods and said it would file a plan of liquidation for the case.

According to the termination motion, the sale of substantially all of Rdio’s assets closed on Dec. 23. The committee said the other case accomplishments the company claimed in its exclusivity extension motion “are either illusory or trivial.”

“The only remaining business appears to be resolving the committee’s claims against the prepetition secured parties and reconciling claims after the bar date passes on March 21,” the committee said. “Each of these tasks is well-suited for post-confirmation completion.”

A further hearing is scheduled for April 1.

Rdio is a San Francisco-based licensed music service. The company filed for bankruptcy on Nov. 16 under Chapter 11 case number 15-31430.

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