One month to the day after the PledgeMusic board issued a statement that the troubled crowdfunder was headed to administration, the UK equivalent of bankruptcy, the company’s board of directors issued a brief update.
“PledgeMusic is still pursuing a sale (which if it happens is likely to be via an administration) but has contingency plans for other insolvency processes if that is not achievable.”
Today’s statement came in response to a Hypebot inquiry on the status of the bankruptcy filing.
On May 20th, the PledgeMusic board posted that, “The company continues to work with outside counsel on the most appropriate next steps, and we will update you with those specifics as we get more information.” Former CEO Benji Rogers added some clarity, saying in his own blog post that the PledgeMusic was, in fact, headed for administration.
Since then, PledgeMusic has been silent; and as of June 20th, no administration filings have been registered with the UK courts.
A sale “via an administration” could limit any purchaser’s liability to artists and other creditors; but it is also likely to result in more funds available for distribution than a court direct liquidation of assets.