Background music company Muzak Holdings LLC and some of its subsidiaries have completed a financial restructuring and emerged from Chapter 11 bankruptcy. As a result, it has a new majority owner — Silver Point Capital.
By restructuring, Muzak says it has “significantly” improved its balance sheet and cut its outstanding debt by more than half.
Its Chapter 11 plan of reorganization was confirmed by the U.S. Bankruptcy Court for the District of Delaware on Jan. 12. The court also approved a previously announced $108.75 million “senior secured exit financing facility commitment” from GE Capital Restructuring Finance, Silver Point Finance and MFC Global Investment Management.
That commitment will be used to satisfy claims of lenders, to fund working capital and other general purposes. Under the terms of the reorganization plan, Silver Point Capital has become the majority equity owner.
As a result of the restructuring, Muzak has added three new divisions: media, touch and systems.
The media division will centralize existing Muzak products including Music, Voice and Video, to streamline internal processes and expand its services. Touch will focus on “sensory branding,” especially the in-store experience involving music, digital signage, messaging, music licensing, social media and integrated technology. Systems combines Muzak’s pro sound, technical operations, QSR and strategic equipment development departments.