Penton Media, a B-to-B publisher of trade magazines and directories, and stager of trade shows, is eliminating $270M in debt via a visit to Chapter 11 status. Among its titles are Radio magazine and Broadcast Engineering.
In addition to removing debt, shareholders will be putting investment cash into the company and improve its liquidity.
The company said it would be business as usual during the procedure, which is expected to last from 30 to 45 days. It claims sufficient cashflow and liquidity to “meet its obligations.” There will be no changes in management, and employees will be shielded from any negative repercussions.
“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,” said CEO Sharon Rowlands. “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.”