Former Beyond Oblivion's disclosure approved, plan hearing Aug. 21

By Lisa Kerner

Charlotte, N.C., July 12 - Beobi, Inc.'s disclosure statement was approved, pending certain changes, by the U.S. Bankruptcy Court for the Southern District of New York on Thursday, according to an attorney familiar with the case.

An approved order of an amended disclosure statement is expected on Monday, the attorney said.

A plan confirmation hearing is set for Aug. 21.

The former Beyond Oblivion Inc. filed a plan of liquidation on May 31 that calls for the liquidation of the company's remaining assets and the distribution of assets to creditors.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims, secured claims and priority non-tax claims will be paid in full in cash;

• Holders of general unsecured claims will receive a share of any cash distributions from a liquidating trust; and

• Interests will be cancelled and extinguished, and holders will receive no distribution.

As previously reported, Beyond Oblivion received court approval to sell its assets to Gee Beyond Holdings, LLC in March for about $4.2 million, including $2.5 million in cash, a senior secured note in the amount of $1.5 million and the assumption of contract liabilities in the amount of about $200,000.

Beyond Oblivion, a New York-based digital music company, filed for bankruptcy on Jan. 23. Its Chapter 11 case number is 12-10282.

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