Key3Media's reorganization plan approved by court

By Carlise Newman

Chicago, May 9 - Key3Media Group Inc.'s disclosure statement has been approved by the court and it has begun soliciting votes for its reorganization plan. The confirmation hearing for the reorganization plan is scheduled for June 4.

On Feb. 3, Key3Media announced its reorganization plan, backed by investment funds managed by Thomas Weisel Capital Partners, which own 68% of the company's bank debt and 38% of its 11.25% senior subordinated notes due 2011.

Through the reorganization, Key3Media will reduce its total debt by 87% from $372 million to $50 million and eliminate all of its existing preferred stock and common equity. Annual interest expense will be cut from approximately $38 million to $3.4 million.

"This is another milestone in our progress toward a successful reorganization of the company," said Fredric Rosen, chairman and chief executive officer of Key3Media, in a news release. "The company remains on schedule to complete its reorganization and emerge within the next 45 days with a strong financial foundation."

Based in Los Angeles, Key3Media is a producer of information technology tradeshows and conferences.

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