Muzak Completes Financial Restructuring and Emerges From Chapter 11
Muzak Holdings LLC and certain of its subsidiaries (together, the “Company”) have announced that the Company has successfully completed its financial restructuring and has emerged from protection under Chapter 11 of the United States Bankruptcy Code. Through the restructuring process Muzak significantly improved its balance sheet, reducing the Company’s outstanding debt by more than half.
As previously announced, Muzak’s chapter 11 plan of reorganization was confirmed by the United States Bankruptcy Court for the District of Delaware on January 12, 2010. The Court also approved Muzak’s previously announced $108.75 million Senior Secured Exit Financing Facility commitment from GE Capital Restructuring Finance, Silver Point Finance, LLC (“Silver Point”) and MFC Global Investment Management. The commitment will be used to satisfy the claims of the Company’s prepetition senior secured lenders, to fund working capital and for other general corporate purposes. In addition, under the terms of the Company’s plan of reorganization, Silver Point Capital has become the majority equity owner of Muzak.
“Today marks the successful completion of our financial restructuring and a new beginning for our 75 year old company,” said Stephen P. Villa, Chief Executive Officer of Muzak. “When we began this process less than one year ago, we set out to develop a plan that would garner the full support of our creditors, while allowing the Company to continue normal operations. We are proud to have accomplished that goal and to have maintained our strong commitment to our clients. I would like to thank our employees and independent affiliates, whose hard work and loyalty have been instrumental in all that we have achieved and will continue to be an important factor in our future. We are excited to move forward as a financially stronger company and are confident that we are now well-positioned for continued leadership and innovation, which will ensure the long-term success of the Company.”
Mr. Villa continued, “To best serve our clients going forward, we have realigned Muzak’s organizational structure. It is with great pleasure that we formally announce the launch of Muzak’s three new business divisions. Our commitment to clients has never been stronger, and we are confident that this new structure will allow us to further improve client service and enhance the client experience.”
