Muzak Emerges From Bankruptcy
February 5, 2010 at 4:18 AM (PT)
MUZAK HOLDINGS LLC has emerged from Chapter 11 bankruptcy, the company announced this week. The reorganization cut the company's outstanding debt by more than half and includes a $108.75 million Senior Secured Exit Financing Facility commitment from GE CAPITAL RESTRUCTURING FINANCE, SILVER POINT FINANCE and MFC GLOBAL INVESTMENT MANAGEMENT.
SILVER POINT is now the majority equity owner of the commercial audio provider, which also announced that it has split into three divisions, Media (headed by EVP CHRISTOPHER WILLIAMS), TOUCH ("sensory branding" in-store, headed by EVP/GM ROBERT FINIGAN), and Systems (headed by EVP/COO TOM GANTERT).
"Today marks the successful completion of our financial restructuring and a new beginning for our 75-year-old company," said CEO STEPHEN P. VILLA. "When we began this process less than one year ago, we set out to develop a plan that would garner the full support of our creditors, while allowing the Company to continue normal operations. We are proud to have accomplished that goal and to have maintained our strong commitment to our clients. I would like to thank our employees and independent affiliates, whose hard work and loyalty have been instrumental in all that we have achieved and will continue to be an important factor in our future. We are excited to move forward as a financially stronger company and are confident that we are now well-positioned for continued leadership and innovation, which will ensure the long-term success of the Company."