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SonicBlue Inc. has auctioned off its three primary lines of business for $42.4 million. D&M Holdings Inc., parent of audio equipment makers Denon and Marantz Japan, purchased SonicBlue’s Replay TV digital video recorder and its Rio audio player for $18 million and $18.2 million, respectively. And Opta Systems LLC made the winning $6.2 million bid for the company’s GoVideo business unit, which consists of the company’s dual-deck VCRs and DVD-VCRs. The auction took place in the U.S. Bankruptcy Court in San Jose a month after SonicBlue filed for Chapter 11 bankruptcy. Craig Barbarosh, a partner at Pillsbury Winthrop’ s Costa Mesa office, said “in less than 30 days the case was filed and assets sold at a significantly higher price than the opening bid,” which was about $10 million for Replay TV and $6 million for the Rio. Barbarosh said SonicBlue would be selling its remaining analog modem business, as well as its patent portfolio. The Santa Clara-based company had been embroiled in litigation with movie studios and TV networks for the past 18 months. The studios and networks claimed the Replay TV device — which enables viewers to fast-forward through commercials and send copies of programs to others — would deprive them of advertising revenue and harm the value of their copyrighted works. The Pillsbury team representing SonicBlue also included partners Sue Hodges, William Freeman and Gabriella Lombardi and associates Mark Houle, Nadine Youssef, Matthew Walker, Mary Helvey and Christine Lillquist. Simpson Thacher & Bartlett partners Kenneth Ziman and Daniel Clivner, of the firm’s New York and Los Angeles offices, respectively, represented D&M Holdings in the transaction. Rick Antonoff, a partner in the New York office of Greenberg Traurig was the lead counsel for Optima Systems. Owens-Brockway Latham & Watkins partner Tracy Edmondson was thrilled when client Owens-Brockway Glass Container Inc. tapped her for a high-yield debt offering of $900 million. “It was probably one of the first and one of the largest high-yield deals this year following a dry spell during the war,” Edmondson said. “And it’s notable because it was one deal of $900 million broken into two transactions of $450 million each, one part secured and the other not.” Edmondson said that until six months ago it was rare to see a secured high-yield bond deal since it’s difficult to structure collateral for bondholders. But now, she said, it has become more common. Owens-Brockway, a subsidiary of Owens-Illinois Inc., one of the world’s largest manufacturers of glass containers, used the net proceeds from the debt sale to purchase $300 million of its outstanding bonds. Other Latham lawyers working on the transactions included associates Andrew Williamson, Scott Willoughby and Ryan Nord in San Francisco, and in the Los Angeles office, partner John Jameson and associates Angelo Lombardo and Heather Field. The underwriters — Deutsche Bank Securities, Banc of America and Citigroup — were represented by Simpson Thacher & Barlett partner John Tehan and associates Marisa Van Dongen, Michael Bender and Stella Kwak in New York.

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