UPDATE: Bankruptcy Court Approves Cygnus Reorganization Plan
Publisher expects to emerge from Chapter 11 in two weeks.
At a hearing Tuesday, a U.S. bankruptcy court in Delaware approved Cygnus Business Media's pre-packaged plan of reorganization. The publisher said it expects to emerge from Chapter 11 protection within the next two weeks.
The courtâ€™s approval provides that Cygnusâ€™ general unsecured creditors, including all vendors, will be paid in full in â€śthe ordinary course,â€ť the company said.
Cygnus filed the reorg plan last month, which would result in a secured debt-equity exchange to reduce the company's debt from $180 million to $60 million. Cygnus said it had reached an agreement with 23 of its 24 lenders on a pre-packaged restructuring but an out-of-court settlement required a unanimous decision.
According to Cygnus interim CEO Charles Carnival, the support the company has received from advertisers and vendors during the reorg process has â€śprovided a great deal of stability and focus.â€ť Cygnus is being advised by legal counsel Curtis, Mallet-Prevost, Colt & Mosle, financial advisors Zolfo Cooper and investment bankers Miller Buckfire & Co.