Penton to File for Chapter 11 Restructuring

Click here...

BREAKING NEWS & VIEWS

Penton to File for Chapter 11 Restructuring
Tuesday, February 9, 2010
Steve Smith

Penton Media will eliminate $270 million of company debt in a prepackaged Chapter 11 restructuring agreement that it plans to file in the next few days, Penton announced this morning. The company has reached terms of agreement with its lenders, and some shareholders in the company have also agreed to make “significant new investment” in the company to provide working capital and improve liquidity. Penton expects to have its package finalized and to re-emerge from Chapter 11 bankruptcy in 30 to 45 days. Penton claims that its cash flow is solid and that day-to-day operations or the management structure will not be affected.

Sharon Rowlands, CEO, Penton Media, said in a statement, “This capital restructuring is a positive, strategic step for Penton that is in the best interests of the company and our employees, customers and suppliers.” She went on to say that the goal of the restructuring was to lower the debt level of the company to a sustainable level. Rowlands also says that the company's operations “have been and continue to be profitable.”

Penton says there will be no disruption of its print, digital and event properties during the restructuring and that no change in control of the company will take place. Penton also says that suppliers of post-petition goods will be paid as usual and that there are provisions in the prepackaged plan “for full payment of all pre-petition claims, so there should be no impact on Penton’s suppliers.”

Update: A Penton spokesperson tells minonline that there are no layoffs, title closings or any other changes to the current operations planned at Penton as a result of the filing.

If you have breaking news to share please contact Steve Smith at ssmith@accessintel.com

More Breaking News & Views

Breaking News & Views Archives

COMMENTS

I wonder if this means Tom Kemp will be coming back to Penton? He was the best thing that ever happened to that company - it's been downhill ever since he left.

Posted by Wiggum on Tuesday, February 9, 2010 @ 01:26 PM

Post a Comment

Just Posted

Most Read Stories

More Just Posted Stories

Manager, Digital Media, NCC Media

PR Director, The Knot Inc.

Online Digital Ad Sales Executive, eMedTV

Media Jobs | Job Alerts | Post Your Resume

Freelance Job Center

min Social Networks

Join us on

Click here...

White Papers

Get even smarter -- download a white paper today.

Featured White Papers:
Internet measurement of ad-noting: Sampling and Statistical Issues
By MRI

Successfully Building Communities for Your Business
By Ripple6

... more Whitepapers

min Contests

min contests

Enter the Smithsonian Contest with a chance to win a $500 AMEX Gift card plus. Enter online or download pdf.

To sponsor a min contest in 2010, contact Erica Gottlieb at egottlieb@accessintel.com.

Reserve your contest in min

Click here...

min Press

The State of Digital Media

View Details

Twitter Best Practices for Media Companies

View Details

Internet Sales Guidebook

View Details

All min Press

Events Calendar

March 25, 2010
Using Facebook to Grow Your Audience, Your Customer Relationships and Your Online Business
Learn More

April 7-8, 2010
The 3rd Annual Digital Media Measurement & Pricing Summit
Learn More

April 19-21, 2010
Ad-Tech
Learn More

All Events

Copyright © 2010 Access Intelligence, LLC. All rights reserved. Reproduction in whole or in part in any form or medium without express written permission of Access Intelligence, LLC is prohibited. For more details please see Terms and Conditions.