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Muzak Holdings nears bankruptcy exit

Published on 4 Dec 2009 under category: legal

Muzak Holdings has moved a step closer to coming out of bankruptcy.

The firm has received commitment of a senior secured exit financing facility from GE Capital Restructuring Finance, Silver Point Finance and MFC Global Investment Management.

Bankruptcy Court approval is still required for this deal to be put in place.

The agreement would see the three firms provide a $108.75 million (£65 million) facility for Muzak Holdings.

A hearing to discuss the firm's Chapter 11 plans will take place on January 12th.

Stephen Villa, chief executive officer for Muzak Holdings, said: "Securing exit financing helps us clear one of the last major hurdles in our path to emergence from Chapter 11.

"Our ability to obtain this financing is a testament to our business, the unrelenting focus and hard work of Muzak's employees, and the overall value of the Muzak franchise."

Muzak Holdings specialises in music programming and in-store and on-hold messaging.

If you require advice on Insolvency and Bankruptcy please call us on +44 (0)20 7831 0101 and ask for Katherine Sillett.