Summit Business Media’s Reorganization Plan Approved by U.S. Bankruptcy Court
Set to emerge from bankruptcy in approximately two weeks.
Summit Business Media said late Thursday night that the United States Bankruptcy Court for the District of Delaware has approved the b-to-b company’s plan to “implement its capital restructuring”, which was originally announced on January 25.
According to a press statement, this approved restructuring will rid Summit of $140 million of long-term debt from the company’s balance sheet. Summit is expecting to emerge from bankruptcy in two weeks.
“While the challenge of this process were real, emerging in under four months without so much as a contested hearing is a testament to the hard work put in over the last few years by our management team, our advisors and our lenders,” says president/CEO of Summit Andrew Goodenough.
“Summit emerges from this restructuring in much stronger financial shape.”
In late January, Summit filed voluntary Chapter 11 bankruptcy. The reorganization plan includes using Summit’s bank balances and cash flow from its existing operations to meet working capital needs.
The company also determined at the time that any pre-filling advertising, subscriptions and event contracts would be honored.
Because only 83 percent of Summit lenders approved this plan, the plan had to go through the courts.
In 2006 and 2007, Summit closed about seven deals in a 20-month period (including purchasing Pfingsten, Highline and Wicks Business Information), adding to the debt they are now emerging from.