Character.AI files for bankruptcy , agrees to sell some assets to Disney for $20 million

Character.AI said on Monday it had filed for Chapter 11 bankruptcy in the US and agreed to sell some of its assets to Walt Disney for $20 million.

Here are some details about the bankruptcy and sale proceedings:

* Character.AI said it has begun the formal process to sell assets, including a license of certain intellectual property, through Chapter 11 and is seeking court approval for auction rules that would designate Disney as the lead, or stalking horse, bidder.