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IN BRIEF / Technology

Napster to Tap Into $5.1-Million Credit Line

June 26, 2002|Bloomberg News

Napster Inc., the Internet music-swapping service that has filed for bankruptcy protection, won final court approval to tap into a $5.1-million credit line and spend $1.1 million to retain employees.

The company also sought approval of bidding procedures to sell its assets.

U.S. Bankruptcy Judge Peter Walsh said the proposed schedule didn't provide enough time to test whether the $91-million credit portion of Bertelsmann's bid is appropriate.

Guetersloh, Germany-based Bertelsmann has offered to pay $9 million in cash, $1 million more than its original bid, for the song-swapping service. It also will give it the unused portion of its credit line and forgive $9 million in loans and advances.

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