Ziff Davis Files Chapter 11
“Importantly, as part of the restructuring, the ad hoc noteholder group has agreed to set aside up to $24.5 million to fund the Company's operations during the Chapter 11 case as well as after the Company emerges from Chapter 11. These funds, together with the Company's current cash reserves and cash flow from operations, will be sufficient to fund its operations during the reorganization process. In addition, the restructuring, if approved by the Court, will result in a substantial de-leveraging of the Company's balance sheet. Specifically, $225 million (principal amount) of senior secured indebtedness (including the Senior Secured Notes) will be exchanged for a new $57.5 million (maximum face amount) senior secured note and at least 88.8% of the common stock in the reorganized Company. The restructuring provides for 11.2% of the reorganized Company's common stock to be distributed to holders of the Company's subordinated unsecured notes if the class of such holders votes to accept the restructuring. Holders of the Company's subordinated, unsecured notes have not yet agreed on the restructuring; however, the Company believes the restructuring plan can be approved by the Court without their agreement.”
The company expects to operate as normal during the restructuring.