MCSi to be sold to Sun Capital

By Carlise Newman

Chicago, Oct. 17 - MCSi Inc. said it will be sold to Sun Capital Partners Inc. The company's lenders under its pre-petition secured loan agreement have executed a letter of intent to sell their equity interests in the reorganized company to an affiliate of Sun Capital.

Sun Capital, in conjunction with the lenders, will arrange exit financing and working capital through a revolving credit facility upon the company's emergence from Chapter 11.

MCSi also said it has filed a proposed disclosure statement relating to its plan of reorganization previously filed under Chapter 11 of the Bankruptcy Code. If the lenders reach a definitive agreement with Sun Capital, the disclosure statement will be amended accordingly.

However, MCSi said that any agreement with Sun Capital is not expected to affect materially or enhance the proposed treatment of the company's equity holders and other creditors under the plan.

Under the company's proposed plan, MCSi's outstanding common stock and other equity securities will be cancelled and new stock will be issued to the lenders.

The company expects to emerge from Chapter 11 protection by the end of the year.

Atlanta-based MCSi is a provider of presentation, broadcast and supporting network technologies.

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