Summit Business Media emerges from Chapter 11 a 'more-focused' company

By Lisa Kerner

Charlotte, N.C., May 20 - Summit Business Media announced on May 20 it emerged from bankruptcy following approval of its pre-arranged plan of reorganization on May 5.

The company eliminated more than $140 million of long-term debt from its balance sheet.

"Summit emerges from this restructuring a leaner, more-focused and better-capitalized company," said president and chief executive officer Andrew Goodenough.

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.

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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