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audiohighway.com Files for Chapter 11

After a rough few months in which it saw sorely-needed funding fall through and subsequently layed off 21 of its 30 workers, audiohighway.com filed for Chapter 11 bankruptcy late Wednesday.

Filed in U.S. Bankruptcy Court for the Northern District of California in San Jose, Calif. audiohighway.com maintains a small technical and operations staff. In a company statement issued Thursday, the company said it filed to protect its assets and that it would file a plan to reorganize again in the future.

Audiohighway.com, which had angled to be the leading entertainment portal for free streaming audio and video content, cut its staff to a nine-member skeleton crew in November.

The firm failed to find venture capital to bail itself out after announcing revenues were down $130,000 in the past three months from the same period in 1999.

The news forced the Nasdaq Stock Market to sit up and take notice: the organization halted all trading for the firm at 7:31 a.m. for "additional information requested" from the company at a last sale price of 37 cents. Trading will remain halted until audiohighway.com has fully satisfied Nasdaq's request for additional information.