Sonicblue Fails to Close ReplayTV Deal with D&M
Tue April 1, 2003 11:50 AM ET
NEW YORK (Reuters) - Bankrupt consumer electronics company Sonicblue Inc. SBLUQ.O on Tuesday said it failed to complete a proposed sale of its Rio portable audio and ReplayTV television recording systems to Japan's D&M Holdings Inc. 6735.T , and the assets will now be auctioned.
In morning trade, Sonicblue shares were off 23.9 percent to 2.13 cents each.
Last month, Sonicblue filed for Chapter 11 bankruptcy protection in the northern district of California in San Jose. It had hoped to sell Rio, a maker of CD and MP3 players, and ReplayTV to D&M for $40 million, plus the assumption of some $5 million in liabilities.
Sonicblue also had agreed to sell its GoVideo unit, which makes DVD players and other devices, to Opta Systems LLC for $12.5 million.
But Santa Clara, California-based Sonicblue said that negotiations with D&M failed to produce a final asset purchase agreement prior to a court-appointed deadline. Under the bankruptcy proceedings, Sonicblue is to auction GoVideo on April 4, and ReplayTV and Rio on April 15. The company did not mention any missed deadlines related to GoVideo.
The company said its relationship with D&M is "still strong" and anticipates that D&M will participate in the court-run auction process.
Separately, D&M, the parent company of established audio equipment makers Denon Ltd. and Marantz Japan Inc., said it remains interested in the businesses and is "evaluating the best way to proceed through the court auction process." |
