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FROM THE FRONTLINES :: JEREMY GREENFIELD
Ziff Davis Fails to Make Payment on 2009 Debt: Wants to Bring Debt-Holders to the Bargaining Table
 Ziff Davis Media has elected not to pay the scheduled interest payment due today on its senior subordinated debt due in 2009. The company will be attempting to restructure its debt, and has hired Alvarez & Marsal, a professional services firm that specializes in “turnaround” situations and debt restructuring.By not making its scheduled payment, Ziff Davis hopes to lure its debt-holders to the bargaining table. “We completed the sale of the Enterprise business, which gave us a nice shot of cash,” says Jason Young, CEO of Ziff Davis, busy on his second week on the job after replacing Bob Callahan, who is now chairman of the board. “The remaining piece of the puzzle was the debt load and the capital structure that was put in place in a very different time in this company’s history. The objective here is to restructure the debt in a way to use the cash flow to reinvest it into our business to grow the business and to manage it ourselves.” More on this move and its implications in this week’s min’s b2b: - What does this mean for the ongoing sales process? - For Bob Callahan? - How long will this all take? - Business as usual at PC Magazine and other ZD properties? More Jeremy Greenfield
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