Summit Business Media Holding Company (f/d/b/a B2B Media Holding Corp.) Files Pre-Negotiated Chapter 11 Bankruptcy Cases

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Summit Business Media Holding Company (formerly B2B Media Holding Corp.) and several affiliates voluntarily filed for chapter 11 bankruptcy protection in Delaware late Tuesday evening with a pre-negotiated plan to significantly reduce the companies' debt obligations. The companies, which are 85% owned by affiliates of Wind Point Partners, reported in court filings that they've reached an agreement with holders of a majority of both their first lien and second lien debt to reduce their current $252 million in debt by approximately $140 million.

Summit Business Media began in 2006 and grew through a series of acquisitions. It describes its business in court filings as "a leading business to business media and information provider for the insurance, investment, and professional services markets." According to its website, Summit offers "a complete mix of media products – magazines, reference books and training, live events and data products that provide breaking news and analysis, in-depth practice management strategies, business-building techniques and actionable data to the various markets that" it covers.

Under the proposed pre-negotiated plan of reorganization (which has not yet been filed with the court), the companies' obligations would be restructured in the following ways:

• Restructuring of $188.6 million in first lien debt

o Restructured into $110 million term loan facility and holders would also receive 89.44% of new equity (subject to dilution)

• Restructuring of $55.2 million in second lien debt

o Second lien debt would be cancelled and holders would receive pro rata distributions of (i) $1 million cash, (ii) 5.56% of new equity (subject to dilution), and (iii) rights to receive approximately 2% of additional new equity under certain, currently unspecified, conditions

• Payments to holders of $8.2 million in general unsecured debt

o General unsecured claimants would receive their pro rata share of only $100,000 (however, note that the companies have sought approval of some payments to "critical vendors" - link to this motion)

• Cancellation of existing equity

o All existing equity would be cancelled

• Exit credit facility

o Summit would receive a $6 million exit revolving credit facility, which will be used in part to repay the DIP credit facility (DIP obligations expected to be $1 million)

Summit and its affiliates are represented by Reed Smith LLP.

All of the significant pleadings filed in Summit Business Media's chapter 11 cases can be accessed on the following website: http://www.chapter11cases.com/Summit-Business-Media-Holding-Companyfdba-B2B-Media-Holding-Corp-_c_20386.html#axzz1C8OHfO63

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DISCLAIMER: Because of the generality of this update, the information provided herein may not be applicable in all situations and should not be acted upon without specific legal advice based on particular situations.

© Randall Reese, Restructuring Concepts LLC | Attorney Advertising

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