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Scour Seeks Bankruptcy Protection

Venture backed by powerbroker Michael Ovitz files to reorganize under Chapter 11.

October 13, 2000
By John Townley: More stories by this author:

As the face of file-sharing continues to sour, Scour, Inc. announced this week that in order to ensure its continued operation in the face of burdensome lawsuits and allow it to continue its evaluation of various strategic business alliances and alternatives, it has filed a voluntary petition for reorganization under Chapter 11 of the Bankruptcy Code.

Scour President Dan Rodrigues emphasized that during the Chapter 11 process all of Scour's products, including Scour Exchange, will continue to be available at the Company's website at http://www.scour.com.

"We took this step in order to preserve Scour's future. The Chapter 11 process will also provide our management and board of directors with adequate time to review and develop recapitalization and restructuring alternatives to strengthen and improve Scour's business position," Mr. Rodrigues said. "Our millions of loyal users worldwide can rest assured that we will continue to offer all of our services."

Scour, which is backed by former Disney executive Michael Ovitz, filed its voluntary Chapter 11 petition in the U.S. Bankruptcy Court for the Central District of California in Los Angeles. The filing automatically stays all pending litigation against the Company.

Scour, founded in 1997, develops and markets Scour.com, the Internet's leading entertainment search site; Scour Exchange, an online multimedia file sharing community; and Scour Caster, an online radio community.

The future of this once-revolutionary files-to-the-people technology? Once Napster and MP3 have either deep-sixed or settled, it will resurface under the guise of "viral" marketing, where files are paid for, but delivered from the nearest person whos got a legit copy.






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