AUSTIN, TX (CelebrityAccess) — Austin-based Mood Media, the parent company behind retail musical services such as Muzak, Trusonic, and BIS Group in Europe, expacts to file for Chapter 11 bankruptcy protection as part of a financial reorganization plan.
According to Mood Media, it has entered into a comprehensive Restructuring Support Agreement with some of its lenders that will shed $404 million of its current debt load of $627.5 million.
As part of the restructuring agreement, Mood Media expects to file a voluntary petition for reorganization under Chapter 11 no later than Jul 30th with a confirmation hearing scheduled for July 31st.
So far, more than 90% of the Mood Media’s first lien term loan lenders, more than 70% of its second lien PIK noteholders, and over 60% of the Mood Media’s equity sponsors have agreed to participate up to the RSA.
Mood Media Corporation was founded in 2004, as Fluid Music Canada and launched their first IPO on the Toronto Stock Exchange in 2008. In 2017, the company was taken private amid sharp losses by Apollo Global Management and GSO Capital Partners amid a financial restructuring.
Mood Media acquired Muzak in 2011 for a reported $345 million. Muzak, which famously supplies retail friendly background music for retail stores, doctor’s offices, and elevators, declared bankruptcy in 2009 in the fallout of the 2008 financial crisis.
“We recognize this is a unique and unprecedented time for our team members, our clients and our Company,” said David Hoodis, Chief Executive Officer of Mood Media. “Like many others, we have taken difficult but necessary steps to protect our business and preserve liquidity. We are now taking action to provide a clear and expedited path to strengthen our financial position, address our debt levels and enable us to be an even better partner to our clients as the world’s leading on-premise and connected media solutions Company. We appreciate the support of our financial stakeholders, which we believe represents their confidence in our business and will enable us to move through the process on an expedited basis.”