Indian-American internet television, Aereo, has filed for bankruptcy protection with the US Bankruptcy Court in New York. The company has sought protection from creditors and breathing room for Aereo to sell its assets, recapitalise or restructure.
The company had been trying to persuade regulators to declare it eligible for a license available to cable systems but its efforts went in vain as timing was uncertain.
US Supreme Court prohibited Aereo stating that it violated broadcasters’ copyrights by capturing live and recorded programmes on miniature antennas and transmitting them to subscribers who paid USD8 to 12 per month.
Chet Kanojia, Chief executive officer of Aereo owns 42.32% of the company and InterActiveCorp holds 23.3%, according to Aereo’s bankruptcy petition. Aereo had raised about USD95.6 million in equity financing. In court papers, Aereo said it had about USD20.5 million of assets and USD4.2 million of debt.
