Headphone Maker With Drake Ties Must Redo Bankruptcy Plan Papers

April 15, 2024, 3:57 PM UTC

Headphone maker Muzik Inc. failed to convince a judge that its restructuring plan outline contains enough information for creditors to vote on the proposal.

The plan’s disclosure documents lack definitions, explanations of risk and information about how it will treat different groups of creditors, Judge Vincent P. Zurzolo of the US Bankruptcy Court for the Central District of California ruled Friday. Muzik—which counts musician Drake, among others, as an equity holder—filed for bankruptcy last year.

The judge’s ruling could doom the company’s chance of reorganizing in bankruptcy. Zurzolo will determine at a June hearing if the Chapter 11 case should ...

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