The
retailer has negotiated to have a total of $375 million in
debtor-in-possession financing from its existing lenders and
intends to raise $335 million in new senior secured notes, the
company said https://refini.tv/3fpM2UC in a statement.
Earlier this month the company reached a restructuring agreement
with key stakeholders that includes debt reduction by nearly
$800 million and new equity investments of up to $165 million to
recapitalize the company.
The company in a court filing said it has between $1 billion and
$10 billion of both assets and liabilities.
Guitar Center, which owns nearly 300 stores across the country,
said business operations will continue without any interruption.
Milbank LLP served as legal counsel, BRG served as restructuring
advisor, and Houlihan Lokey was financial advisor to the
company.
Guitar Center began in 1959 as a store selling home organs in
Hollywood.
The company filed for Chapter 11 bankruptcy in the United States
Bankruptcy Court of the Eastern District of Virginia.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Lincoln
Feast.)
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