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Questex Reaches Agreement With Lenders on Restructuring

5 Oct, 2009 By: Staff Reports



Questex Media Group Holdings Inc., parent company of Home Media Magazine and 22 other print magazines, has reached agreement with its lenders on a balance sheet restructuring to reduce debt.

The company’s management remains in place, and it will continue to conduct business as usual. The restructuring will have no effect on the day-to-day operations of Home Media Magazine.

The Newton, Mass.-based company — which also sponsors 28 conferences and has more than 150 trade Web sites — filed voluntary Chapter 11 petitions in the U.S. Bankruptcy Court for the District of Delaware Oct. 5 to facilitate the restructuring.

Based on the strength of the company’s business plan, senior lenders have already committed financing as part of the filing, including both debtor-in-possession financing and exit financing.

The assets of the company are expected to be sold pursuant to a 363 sale during the next 60 days, Questex stated. A group of the company's senior lenders have entered into an agreement to serve as the stalking horse bidder for purposes of the 363 sale.

“We are pleased with the strong support we have received from our lenders and business partners for a restructuring that will allow us to reduce our debt and achieve a strong, sustainable capital structure,” says Questex CEO Kerry Gumas. “Questex has attractive assets, marketing-leading brands, a great talent base of professionals and a track record of performance that has allowed us to continue to generate strong cash flows. This restructuring will better position the business for future growth for the benefit of all the company’s stakeholders.”

 


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