Internet entertainment streaming service Aereo, which suspended its operations June 28th following the Supreme Court copyright decision in favour of US broadcasters, has filed a voluntary petition for Chapter 11 reorganisation in the US Bankruptcy Court for the Southern District of New York. Aereo also announced that it has appointed Lawton Bloom of Argus to serve as Chief Restructuring Officer during this period.
Given the uncertain regulatory and legal climate after the US Supreme Court’s June reversal of a lower appellate court ruling in the company’s favour, Aereo’s CEO and Board of Directors have determined that Chapter 11 reorganisation is the next logical step to ensure that the company’s core value is preserved while the company restructures. Chapter 11 will permit Aereo to maximise the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts.
In a blog post to consumers on Aereo’s homepage, Aereo CEO and Founder Chet Kanojia said that even with significant victories in the federal district courts in New York and Boston and the Second Circuit Court of Appeals, the reversal of the Second Circuit decision in June by the US Supreme Court had proven difficult to overcome. “The U.S. Supreme Court decision effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty for the company. And while our team has focused its energies on exploring every path forward available to us, without that clarity, those challenges have limited our options,” he admitted
“We have travelled a long and challenging road. We stayed true to our mission and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers. We feel incredibly lucky to have had the opportunity to build something as meaningful and special as Aereo,” he concluded.