Ziff Davis filed for bankruptcy in the Southern District of New York court today as part of a debt restructuring plan.
The technology publisher said the restructuring agreement was made with an ad hoc group of senior secured note holders.
The group has agreed to pay up to $24.5 million to fund the Ziff Davis’ operations during and after the Chapter 11 case, the company says. If the restructuring is approved, the company’s $225 million senior note debt would be reduced. The debt would then be exchanged for a new $50 million senior secured note and at least 88.8 percent of the common stock in the reorganized company.
As part of the restructuring, the publisher intends to implement a reorganization soon.
“This agreement underscores our Senior Secured Noteholders’ confidence in our ability to position ourselves for continued profitable growth," CEO Jason Young said in a statement. "Today’s restructuring agreement goes a long way towards resolving the burdens of a debt load and capital structure established seven years ago, during a leveraged buyout of the company.”
Ziff Davis also announced that it was not able to reach an agreement with all of its unsecured noteholders.
Carrying long-term debt of about $400 million, Ziff last August announced that it was exploring options to restructure its debt and would not make a scheduled interest payment on its senior subordinated compounding notes due in 2009. The company retained corporate turnaround and bankruptcy specialists Alvarez & Marsal and Kirkland & Ellis LLP as advisors as part of the restructuring plan.
Young could not be immediately reached for additional comments.
NOTE: Check FOLIOmag.com throughout the day for updates to this story.
Wow, Hiumro sounds gleeful. Between this and him posing as a Gygax fan, I say we put this trash in the bin.
all this pussyweeping over lost jobs wasn't present when you jackoffs were yucking it up over gerstmann
all this pussyweeping over lost jobs wasn't present when you jackoffs were yucking it up over gerstmannsnap
all this pussyweeping over lost jobs wasn't present when you jackoffs were yucking it up over gerstmann
do you think jeff's farts smell good, kev
what do they smell like
there's a lot of shitty job-doing at ZD too, demi
my real name is kevin, thought you were talking to me for a sec, i'm a distinguished mentally-challenged fellow
garnett lee, i rest my case
i'm older, i win
change your name
Maybe if those people did a better job they wouldn't be bankruptspoiler (click to show/hide):tomato[close]
garnett lee, i rest my case
i dunno who that is ???
Hopefully they have good contacts. I would think they've developed some skill sets after working so long in their industry, Smooth.