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PENTON MEDIA TO ENTER CHAPTER 11
Feb. 9, 2010
min Online reports:
Penton Media will eliminate $270 million of company debt in a prepackaged Chapter 11 restructuring agreement that it plans to file in the next few days, Penton announced this morning. The company has reached terms of agreement with its lenders, and some shareholders in the company have also agreed to make "significant new investment" in the company to provide working capital and improve liquidity.
Penton expects to have its package finalized and to re-emerge from Chapter 11 bankruptcy in 30 to 45 days. Penton claims that its cash flow is solid and that day-to-day operations or the management structure will not be affected.
Sharon Rowlands, CEO, Penton Media, said in a statement, "This capital restructuring is a positive, strategic step for Penton that is in the best interests of the company and our employees, customers and suppliers." She went on to say that the goal of the restructuring was to lower the debt level of the company to a sustainable level. Rowlands also says that the company's operations "have been and continue to be profitable."
Penton says there will be no disruption of its print, digital and event properties during the restructuring and that no change in control of the company will take place. Penton also says that suppliers of post-petition goods will be paid as usual and that there are provisions in the prepackaged plan "for full payment of all pre-petition claims, so there should be no impact on Penton's suppliers."
Update: A Penton spokesperson tells min Online that there are no layoffs, title closings or any other changes to the current operations planned at Penton as a result of the filing.
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