Aereo has filed a voluntary petition for Chapter 11 reorganization in the US Bankruptcy Court for the Southern District of New York.
Aereo also announced that it has appointed Lawton Bloom of Argus to serve as Chief Restructuring Officer during this period.
In a statement, the company said: “Given the uncertain regulatory and legal climate after the U.S. Supreme Court’s June reversal of a lower appellate court ruling in the company’s favor, Aereo’s CEO and Board of Directors have determined that Chapter 11 reorganization is the next logical step to ensure that the company’s core value is preserved while the company restructures. Chapter 11 will permit Aereo to maximize the value of its business and assets without the extensive cost and distraction of defending drawn out litigation in several courts.”
Aereo CEO and Founder Chet Kanojia addressed today’s filing in a blog post to consumers on Aereo’s homepage.
“Even with significant victories in the federal district courts in New York and Boston and the Second Circuit Court of Appeals, the reversal of the Second Circuit decision in June by the US Supreme Court has proven difficult to overcome,” said Aereo CEO and Founder Chet Kanojia.
“The US Supreme Court decision effectively changed the laws that had governed Aereo’s technology, creating regulatory and legal uncertainty for the company. And while our team has focused its energies on exploring every path forward available to us, without that clarity, those challenges have limited our options.
“We have traveled a long and challenging road. We stayed true to our mission and we believe that we have played a significant part in pushing the conversation forward, helping force positive change in the industry for consumers. We feel incredibly lucky to have had the opportunity to build something as meaningful and special as Aereo.”