Interep Restructures And Gets New Financing
March 31, 2008 at 10:50 AM (PT)
INTEREP announced TODAY (3/31) that it has entered into a consensual balance sheet restructuring to be implemented through a Chapter 11 plan of reorganization. This agreement, which is supported by INTEREP’s largest bondholders, funds managed by OAKTREE CAPITAL MANAGEMENT, L.P. and SILVER POINT CAPITAL, L.P., allows the company to eliminate all of its existing cash-pay indebtedness. OAKTREE and SILVER POINT have also agreed to provide INTEREP with a new $25 million credit facility.
"The strategic decision INTEREP has chosen to take today establishes a solid financial footing for the company going forward," Vice Chairman/CEO DAVID KENNEDY STATED. "With the agreement of the key bondholders, the company now has a plan that will reduce debt, provide the financial resources to grow, and put any uncertainty about iNTEREP’s future behind us."
INTEREP noted that its clients and customers will not be affected by the Chapter 11 process, and that the company intends to honor all obligations in the ordinary course.