Muzak Set to Leave Bankruptcy by End of January
Reorganization approved; company cuts debt by more than half to $230 million
January 19, 2010
Muzak Holdings LLC, which filed for bankruptcy protection on Feb. 10, 2009, said that its plan of reorganization was approved by the Delaware bankruptcy court and the approval likely will allow it to emerge from bankruptcy by month-end.
Muzak said that the bankruptcy will allow it to cut its outstanding debt by more than half to $230 million and the company’s annual interest expense is also being "significantly reduced."
“With our strengthened capital structure, we will continue investing in new talent and technology to provide innovative new offerings and to further enhance the first class products and services that our clients have come to expect from Muzak,” Stephen Villa, chief executive of Muzak, said in a statement.
In addition to getting approval for its plan of reorganization, Muzak also got approval for an exit loan totaling $108.75 million. Lenders include GE Capital, Silver Point Finance and MFC Global Investments Management. Proceeds from the loan will be used for working capital and other general corporate purposes.
Kirkland & Ellis is debtor counsel and Moelis & Co. is serving as financial advisor to Muzak.
For more information on related topics, visit the following:
