Muzak first-day motions approved

By Caroline Salls

Pittsburgh, Feb. 12 - Muzak Holdings LLC obtained court approval of all of its first-day motions, including access to more than $20 million of cash on hand to operate its business, according to a company news release.

Muzak said approval of the first-day motions will allow the company to continue its normal operations during its Chapter 11 financial restructuring.

"The court's prompt approval of our first-day motions is a positive step forward for Muzak, setting the tone for us to move quickly through the restructuring process while continuing to operate our business and serve our clients without interruption," chief executive officer Stephen P. Villa said in the release.

"We intend to work closely with our creditors to implement strategies that will right size our capital structure and enhance our financial flexibility.

"We are fully committed to making this financial restructuring successful and positioning the company for sustainable profitability."

In addition to the cash access, the company received court approval to pay all outstanding employee wages, health benefits and other employee obligations and to honor any pre-bankruptcy amounts owed to its independent affiliates.

The court has also granted Muzak approval to honor all of its outstanding client programs, including promotional programs.

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

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