US NRI's Internet TV startup files for bankruptcy

Aero Inc, the online video streaming company has filed for bankruptcy protection. The Chapter 11 filing came five months after the US Supreme Court said Aereo violated broadcasters' copyright by capturing live and recorded programmes on miniature antennas and transmitting them to subscribers who paid $8 to $12 a month. The decision forbade Aereo's business model, that CEO Chet Kanojia said three years ago set out to build a better TV experience for the consumer. They knew they had touched a nerve, had created something special, and built something meaningful for consumers. However the Court decision created 'regulatory and legal uncertainty' that proved insurmountable and ultimately the challenges were too difficult to overcome. In filing with the US Bankruptcy Court in New York chief financial officer Ramon Rivera said getting protection from creditors should provide breathing space for Aereo to sell its assets, recapitalize, or restructure. Lawton Bloom a principal at Argus Management Corp in New York was named Aereo's chief restructuring officer. The Supreme Court decision was a victory for broadcasters including CBS, Comcast's NBC, Walt Disney Co's ABC and Twenty-first Century Fox Inc's Fox network. Aereo suspended its streaming service three days after the decision and it laid off 74 employees, leaving just 14. In court papers Aereo said it had about $20.5 million in assets and $2.4 million in debts.