Muzak Holdings LLC says it is moving toward emergence from Chapter 11 bankruptcy reorganization after receiving financing commitments from three lenders.
Muzak announced that it has received a joint commitment from GE Capital, Restructuring Finance, Silver Point Finance LLC and MFC Global Investment Management to provide a $108,750,000 Senior Secured Exit Financing Facility. The commitment, which is subject to Bankruptcy Court approval, contemplates use of the exit financing to satisfy the claims of Muzak’s pre-petition senior secured lenders under the company’s Chapter 11 Plan of Reorganization, and fund working capital and other general corporate purposes.
“Securing exit financing helps us clear one of the last major hurdles in our path to emergence from Chapter 11. Our ability to obtain this financing is a testament to our business, the unrelenting focus and hard work of Muzak’s employees, and the overall value of the Muzak franchise,” said Stephen P. Villa, CEO of Muzak.
“I thank GE, Silver Point and MFC for their confidence in our business and for recognizing Muzak’s prospects for growth and value creation. I also want to express my sincere appreciation to our team members and all of Muzak’s other stakeholders for their continued support and loyalty throughout this process,” Villa added.
Muzak said the financing is subject to the satisfaction of customary conditions to closing, including, without limitation, confirmation of the Plan of Reorganization by the Bankruptcy Court and execution and delivery of definitive documentation. A hearing to consider confirmation of the Company’s Chapter 11 Plan is set for January 12, 2010.
Kirkland & Ellis LLP is serving as legal advisor and Moelis & Company is serving as financial advisor to Muzak.
