Muzak granted approval to enter into commitment for exit financing

By Lisa Kerner

Charlotte, N.C., Dec. 22 - Muzak Holdings LLC was authorized to enter into a commitment letter for exit financing, according to a Monday fling with the U.S. Bankruptcy Court for the District of Delaware.

The company received a commitment from GE Capital, Restructuring Finance, Silver Point Finance, LLC and MFC Global Investment Management to provide a $108.75 million senior secured exit facility.

As previously reported, exit financing will be used to satisfy the claims of Muzak's pre-bankruptcy senior secured lenders under its plan of reorganization as well as to fund working capital and other general corporate purposes.

The financing is subject to the satisfaction of customary closing conditions, including confirmation of the company's plan and execution and delivery of definitive documentation.

The plan confirmation hearing is scheduled for Jan. 12.

Muzak, a Fort Mill, S.C.-based recorded music company, filed for bankruptcy on Feb. 10, 2009 in the U.S. Bankruptcy Court for the District of Delaware. Its Chapter 11 case number is 09-10422.

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