Deluxe Entertainment Services pre-packaged plan effective Nov. 6

By Caroline Salls

Pittsburgh, Nov. 7 – Deluxe Entertainment Services Group Inc.’s pre-packaged Chapter 11 plan of reorganization took effect on Wednesday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of New York.

The plan was confirmed on Oct. 25.

Following the implementation of its financial restructuring, Deluxe said its long-term debt would be reduced by well more than half, and the company would have access to $115 million of new financing to support its ongoing operations and investments.

As previously reported, the company entered into a restructuring support agreement that called for the exchange of all of its existing term loan debt and priming term loan debt for 100% of the reorganized company’s common stock.

Kirkland & Ellis, LLP is acting as legal counsel for the company, PJT Partners is acting as its financial adviser, and AlixPartners is acting as its restructuring adviser.

Deluxe is a Los Angeles-based provider of digital asset creation, management and distribution services. The company filed bankruptcy on Oct. 3 under Chapter 11 case number 19-23774.

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