The fallout from SpiralFrog’s closure last week continues. CNET has been doing some digging, and has revealed that shareholders in the company won’t get any of their money back. In a letter to investors, SpiralFrog’s attorneys Rattet, Pasternak and Gordon-Oliver say that any money collected from selling the company’s assets will go to a group of lenders represented by Gottbetter Capital Finance, who loaned the company $34 million. Meanwhile, a source close to SpiralFrog tells CNET that SpiralFrog users’ tracks will become inaccessible in two months’ time due to their DRM, since users won’t be able to log in to the SpiralFrog website to renew it. Finally, Digital Music News has been gathering anonymous quotes on the company’s demise, with sources describing SpiralFrog as a “victim of its capital structure” and a “crapshoot”.
SpiralFrog update: shareholders get nothing, consumers to lose tracks
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March 23rd, 2009 by Music Ally
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