Source Interlink Companies, Inc. Provides Update on Privatization
06 Mai 2009 - 11:14PM
Business Wire
Source Interlink Companies, Inc. (Nasdaq:SORC), one of the
largest publishers of magazines and online content for enthusiast
audiences and a leading distributor of DVD's, CD's, magazines,
video games and books today provided an update concerning its
structured reorganization and announced that its common stock will
cease trading on the The Nasdaq Stock Market at opening of business
on May 14, 2009.
On Tuesday, April 28, 2009, the Company announced that it had
reached a restructuring agreement to take the Company private and
eliminate nearly $1 billion of its existing debt. To facilitate the
restructuring, the Company filed a lender-approved pre-packaged
Plan of Reorganization under Chapter 11 of the U.S. Bankruptcy
Code. During first day motions, held Wednesday, the Court entered
various orders to enable the Company to continue operations in the
ordinary course, including authorization to pay all vendors in full
and on time if they agree to maintain current credit and payment
terms and approval of a $385 million debtor-in-possession financing
arrangement. The financing arrangement was consummated on Thursday
and vendors began receiving payment of pre-filing charges
immediately. Recognizing the unique nature of the case and the
parties� desire for a prompt conclusion of the proceedings, the
Court set a hearing for May 28, 2009 to confirm the Company�s Plan
of Reorganization.
In accordance with the Company�s plan to go private, The Nasdaq
Stock Market informed the Company by letter dated May 5, 2009 that
the Company�s common shares would be delisted and all trading
suspended at the opening of business on May 14, 2009 pursuant to
NASDAQ Marketplace Rules 5100, 5110(b), IM-5100-1 and 5250(c)(1).
The action followed the filing of the Company�s Plan of
Reorganization and decision to devote its resources to the
restructuring process rather than the filing of its Annual Report
on Form 10-K for the fiscal year ended January 31, 2009. Because
the delisting is a necessary step in the Company�s plan to go
private, the Company does not intend to request a hearing before
the Nasdaq Listing Qualifications Panel to appeal the decision.
Source Interlink Chairman and Chief Executive Officer Greg Mays
said, �We continue to be very pleased with the progress made this
week in our plan to go private and eliminate a substantial portion
of our existing debt. We are also pleased with the response of our
trading partners, all of which have enthusiastically supported our
plan. Our restructuring is progressing better than expected. We are
on schedule to emerge shortly with significantly less debt,
materially reduced interest expense and substantially improved free
cash flow allowing us to capitalize on several operational
opportunities to further improve and grow our business. Our
restructuring also will permit our employees to continue to do what
they do best - provide exceptional service to our customers.�
ABOUT SOURCE INTERLINK COMPANIES, INC. Source Interlink
Companies, Inc. (NASDAQ:SORC), a media and marketing services
company, is a leading U.S. distributor of home entertainment
products and services and one of the largest publishers of
magazines and online content for enthusiast audiences. Source
Interlink Media, LLC publishes more than 75 magazines and 90
related Web sites. Source Interlink Distribution, LLC services tens
of thousands of retail store locations throughout North America
distributing DVDs, music CDs, magazines, video games, books, and
related items. In addition to distributing more than 6,000 distinct
magazine titles annually, the Company maintains the largest
in-stock catalog of CDs and DVDs in the US -- a combined total of
more than 260,000 titles. Supply chain relationships include
consumer goods advertisers, subscribers, movie studios, record
labels, magazine, book, and newspaper publishers, confectionary
companies and manufacturers of general merchandise.
For more information about the reorganization go to:
www.SourceInterlink.com and click on the Reorganization Information
tab or contact Cynthia Beauchamp, at (239) 949-7624.
Source Interlink (NASDAQ:SORC)
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