NEW YORK – Trade publisher Penton Media – publisher of audio, installation and production titles including Mix, Live Design and Sound & Video Contractor and producers of the annual LDI show – announced that it is filing a "strategic" Chapter 11 bankruptcy.
Penton has reportedly reached an agreement with its lenders on the terms of a restructuring through a pre-packaged Chapter 11 plan of reorganization. If approved, the plan is expected to eliminate $270 million in debt.
In addition to the restructuring of current debt, Penton reports that some shareholders have agreed to make "significant new investements" in the company to provide working capital.
Penton CEO Sharon Rowlands said, "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. It will allow us to achieve a debt level that is more sustainable in the current economic environment. With a strengthened capital structure, we will be better positioned to fully leverage our operations, which have been and continue to be profitable."
Penton has also said that there are no layoffs, title closings or any other changes to the current operations planned as a result of the filing and that it expects to emerge from Chapter 11 within 30 to 45 days.
