Muzak gets needed financing to help exit Chapter 11 bankruptcy proceedingsBy AP
Wednesday, December 2, 2009
Muzak gets Chapter 11 bankruptcy financing
FORT MILL, S.C. — Muzak Holdings LLC said Wednesday it has secured more than $100 million in financing to help it emerge from Chapter 11 bankruptcy proceedings.
The company said GE Capital-Restructuring Finance, Silver Point Finance and MFC Global Investment Management will provide the $108,750,000 “senior secured exit financing facility” to pay claims from some of the company’s biggest lenders. Muzak said the money will also be used for general business expenses.
“Securing exit financing helps us clear one of the last major hurdles in our path to emergence from Chapter 11,” said Stephen Villa, the company’s CEO, said in a statement.
A hearing to consider the company’s plans to exit Chapter 11 bankruptcy is set for Jan. 12.
The company, based in Fort Mill, S.C., creates music programming for retail stores, on-hold phone systems, and office buildings, or “elevator music.”
Muzak filed for Chapter 11 protection in Delaware in February because of heavy debt. The reorganization plan includes the reduction of its debt by more than half to $230 million.
Tags: Financing, Fort Mill, North America, Restructuring And Recapitalization, South Carolina, United States