DIVA Files for Chapter 11; Assets to Be Sold to Gemstar-TV Guide

VOD developer DIVA Systems Corp. recently filed for reorganization under Chapter 11 bankruptcy before a court in California, and filed a voluntary, prenegotiated reorganization plan in which a subsidiary of Gemstar-TV Guide will acquire all of DIVA's assets.

A majority of DIVA's debt holders have approved the reorganization plan. If it proceeds, DIVA will receive shares of Gemstar-TV Guide common stock to distribute to creditors, and Gemstar-TV Guide will own DIVA's technology and assets.

The company estimates the process will take 60 to 120 days. During that period DIVA will continue to provide VOD products and services to customers including AT&T Broadband, Charter Communications and Insight Communications.