Deluxe Entertainment Services Group has received Court approval of its pre-packaged Chapter 11 plan of reorganisation.
Deluxe says it now intends to complete its restructuring plan and emerge from Chapter 11.
Following the implementation of the financial restructuring, Deluxe’s long-term debt will be reduced by well more than half, and the Company will have access to $115 million of new financing to support its ongoing operations and investments.
The company, which owns Company 3 and Encore, as well as VFX house Method, agreed to a debt for equity swap with its debtors back in September.
“This is an important milestone for Deluxe — we have a strengthened balance sheet and new capital to continue our investments in services and technology. Deluxe will be in its strongest financial position in more than a decade, with the resources to lead the industry into the future,” said John Wallace, Chief Executive Officer of Deluxe. “We are incredibly grateful for the ongoing support we received from our employees, customers, vendors and other business partners during the last few months and are very are pleased to have achieved what we set out to do when we began the refinancing process.”
Kirkland & Ellis, LLP is acting as legal counsel for the Company, PJT Partners is acting as its financial advisor, and AlixPartners is acting as its restructuring 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 its legal counsel.
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