Post production services group, Deluxe Entertainment Services, has filed a prepackaged bankruptcy as it looks to hand over the company to its debtors.
In a statement released today, Deluxe said that “all parties involved determined that the best way to implement the debt-for-equity exchange is through a controlled, efficient Court-supervised process, and today the Company took steps to start that process.”
"We have been working to put Deluxe in a strong financial position, and these steps are the best and most efficient way to finalise and implement the comprehensive financial restructuring," said John Wallace, Chief Executive Officer of Deluxe. "This process will allow us to strengthen our balance sheet and gain the financial flexibility and resources to drive investment in key growth strategies with no disruption to our business and no impact to our employees, customers, vendors and other business partners."
Deluxe commenced the formal process of soliciting votes from lenders in support of the comprehensive financial restructuring and filed pre-packaged cases under Chapter 11, outlining a proposed plan of reorganization that details the terms of the financial restructuring, including the debt-for-equity exchange.
Deluxe has requested that the Court schedule a confirmation hearing to approve the Plan on October 24, 2019. Once completed, the Company “expects to emerge from the refinancing process with significantly less debt and additional new financing to support its operations and investments. “
Kirkland & Ellis, LLP is acting as legal counsel for the Company, and PJT Partners is acting as its financial advisor. FTI Consulting, Inc. is acting as financial advisor for a majority group of its senior lenders, and Stroock & Stroock & Lavan LLP is acting as their legal counsel.
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