The restructuring, once finalized, will eliminate $270 million of the company's debt. Additionally, Penton said certain existing shareholders have agreed to make new investments in the company to provide working capital to aid in its overall liquidity. Penton is co-owned by MidOcean Partners and Wasserstein & Co. LP.
"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," Penton CEO Sharon Rowlands said in a statement. "This restructuring will allow us to achieve a debt level that is more sustainable in the current economic environment.
"With a strengthened capital structure, we will be better positioned to fully leverage our operations, which have been and continue to be profitable. We have many opportunities to grow our business and increase our profitability, which we are excited to execute on." Penton will file its reorganization plan with the court in the next fews days. The company expects to emerge from Chapter 11 within 30 to 45 days.
"Penton will emerge as a stronger company as a result of this transaction, and we believe that the company is well-positioned for future success due to its market-leading franchises and outstanding management team," Anup Bagaria and Tyler Zachem, co-chairmen of Penton, said in a statement.
“This is an excellent outcome for Penton, because they’ll now be able to manage their company and take advantage of the transition work they’ve done to make it an information and digital media company,” said Roland DeSilva, managing partner at DeSilva & Phillips, a media investment bank.