Muzak files for bankruptcy (CNN)

[eppur_se_muova]

By Alan Duke
CNN

(CNN) -- Muzak, the company that put pop, string-filled arrangements of rock songs in your elevator, filed bankruptcy papers Tuesday after it missed a $105 million payment to creditors.

The pipeline of easy listening will continue to flow as Muzak restructures its debt during the Chapter 11 process, the company said.

"Muzak is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago," Muzak CEO Stephen Villa said.

Muzak's cash flows doubled in the last three years, Villa said, "demonstrating that our business continues to perform well even in today's challenging environment."

Along with its ubiquitous elevator offerings, Muzak and its 14 affiliates -- all privately owned -- produce on-hold messages and install sound systems, digital signs and drive-thru systems for retail businesses.
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more: http://www.cnn.com/2009/SHOWBIZ/Music/02/11/muzak.bankruptcy/index.html

[Mike 03]

1. My only question, is how could Muzak have debt?

One of the XM stations I love is the "Easy Listening" station, which is basically all "Muzak" and all of the songs are ten or twenty years old.

I didn't even know Muzak existed at its own corporate entity anymore, or as a library of songs recorded long, long ago.

Strange.