No, this is not good news, given their creditor list:
Other top unsecured creditors include vendors such as Universal Music Enterprises, owed $349,321; EMI Capital Records, $320,323; AT&T, $257,384; and Dish Network, $251,276. The American Society of Composers, Authors and Publishers is owed $213,020, the filing said.
Sony Music, BMG Film & Television Music, United Parcel Service and Virgin Records were also listed among the unsecured creditors.
Still, a little Schadenfreud might be excused.
UPDATE: Another reason (besides guns) to love The Nuge:
The backlash [against Muzak] reached a peak in the 1980s when rocker Ted Nugent sought to buy the company for $10m to close it down.