Beyond Oblivion Files Bankrupcy, Owes Sony, WMG, Others Up To $500 Million

More details of the demise of digital music startup Beyond Oblivion were revealed in a Chapter 11 bankruptcy petition this week. The company had announced it would wind down operations after burning through at least $25 million of a pledged $87 million of investor cash. But according to court documents, the company's liabilities are in the $100 – $500 million range including at least two major labels.

Sony Music Entertainment and Warner Music Group are each owed $50 million, for what is described as "trade debt."

The loss is another black eye for lead investor News Corp who paid $9.2 million for a 23% stake in Beyond Oblivion in April 2010 plus 18% for a News Corp director emeritus, according to Reuters. News Corp later invested an additional $2 million.