Playlist.com Goes Chapter 11

ANOTHER ONE BITES THE DUST: Playlist.com, an ad-supported digital music service that attracted such investors as former MTV head Bob Pittman, and executives such as MySpace Music’s Owen Van Natta and John Sykes, has filed for bankruptcy, with $2.2 million in assets (just $203k in cash), while owing the four major labels a total of $25 million. Managers wrote in their filing that the company plans to use Chapter 11 to "gain a breathing spell free from the threat of execution of judgments...so that it can complete a new round of equity financing." Playlist.com owes Universal Music Group $16.6 million, Warner Music Group $4.1 million, Sony Music Entertainment $3.1 million, and EMI Music $2.1 million. (8/24a)