Rdio plan confirmed by bankruptcy court, clearing path for emergence

By Caroline Salls

Pittsburgh, Sept. 28 – Rdio, Inc.’s plan of reorganization was confirmed Tuesday by the U.S. Bankruptcy Court for the Northern District of California.

As previously reported, Rdio said the plan will be funded by the balance of estate funds remaining after payment of all expenses in accordance with approved budgets, together with all funds ultimately paid to the company from escrowed funds and any and all recoveries from causes of action.

Under the plan, administrative claims, priority tax claims, non-tax priority claims and an Iconical secured claim will be paid in full from estate funds.

On account of its secured claim, Pulser will receive all of the estate funds and all future recoveries by Rdio or its bankruptcy estate remaining after senior claims have been paid in full and plan reserves have been fully funded.

Holders of non-label general unsecured claims will receive a share of an unsecured creditors fund after label unsecured claims are satisfied.

Rdio said it is offering holders of label general unsecured claims a settlement.

Interest holders will receive no distribution.

Rdio is a San Francisco-based licensed music service. The company filed for bankruptcy on Nov. 16, 2015 under Chapter 11 case number 15-31430.

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