Summit Business Media's disclosure statement OK'd; plan hearing May 5

By Lisa Kerner

Charlotte, N.C., March 28 - Summit Business Media's disclosure statement was approved, according to a Monday filing with the U.S. Bankruptcy Court for the District of Delaware.

A plan confirmation hearing is set for May 5.

As previously reported, under the company's proposed restructuring:

• The company's first-lien debt will be restructured into a $110 million term loan facility. The balance of the first-lien debt will be canceled, and the debtholders will receive shares of exit term debt and 89.44% of the reorganized company's new equity;

• Summit will also receive an up to $6 million revolving credit exit facility, with the initial draw to be used to repay any amounts outstanding on the company's debtor-in-possession financing on the plan effective date. The initial draw is expected to be $1 million;

• The company's second-lien debt will be canceled in its entirety and holders will receive $1 million in cash, 5.56% of the new equity and rights to receive the equivalent of additional new equity;

• $100,000 will be distributed to general unsecured creditors; and

• All of the company's pre-bankruptcy equity interests will be canceled and holders will receive no distribution.

The company expects to emerge from bankruptcy during the first half of 2011, and the plan calls for continuation of Summit's normal operations.

Summit, a Seven Hills, Ohio, business-to-business media company, filed for bankruptcy on Jan. 25. The Chapter 11 case number is 11-10231.

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