MTS gets March 15 court date for statement, plan confirmation

By Jeff Pines

Washington, Feb. 11 - MTS, Inc. is scheduled for a March 15 court hearing to confirm its disclosure statement and pre-packaged reorganization plan, according to a Feb. 10 order from the U.S. Bankruptcy Court for the District of Delaware.

The plan calls for converting the company's $110 million of senior debt to $30 million of new senior notes and an 85% equity position in the company. Existing stockholders would retain the remaining 15%.

The CIT Group/Business Credit, Inc. and others have already agreed to amend the company's financing to provide up to $100 million of debtor-in-possession financing. MTS estimates the DIP will give it $14 million more in liquidity than its prepetition facility.

MTS, which owns Tower Records, is based in West Sacramento, Calif. It filed for Chapter 11 on Feb. 9. The case number is 04-10394.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.