The U.S. Bankruptcy Court for the District of Delaware Tuesday approved the business media company's joint pre-packaged Chapter 11 plan of reorganization. The company, which is now owned by its lenders, primarily GE Commercial and Barclays, will likely emerge from bankruptcy by Sept. 22.
Cygnus, whose properties include Firehouse magazine, entered bankruptcy proceedings Aug. 3. Like many b-to-b media companies that rely on advertising dollars, it has been hard hit by the recession. Ad pages for the b-to-b publishing sector overall declined about 30% in the first half, according to Business Information Network figures released by American Business Media.
Cygnus had hoped to avoid bankruptcy court, but a single holdout among the company's 24 lenders refused to agree to an out-of-court financial restructuring. John French, former CEO of Penton Media, is still expected to be named CEO of Cygnus once the company officially exits bankruptcy.