Key3Media, like many tech media companies, has been slammed by the recession in tech marketing spending. It has also been hard hit by the reduction in travel in the wake of Sept. 11.
Under the reorganization plan, Tomas Weisel Capital Partners would provide $30 million in debtor-in-possession financing. The funding would enable Key3Mediaâs trade shows and conferences to take place as scheduled.
Through the recapitalization, Key3Media said it will reduce its total debt by 87%, from about $372 million to $50 million, and eliminate all of its existing preferred stock and common equity. The plan will also cut the companyâs annual interest expense from about $38 million to $3.4 million.
Fredric D. Rosen will remain chairman-CEO.