Mood Media pre-packaged Chapter 11 plan confirmed, effective July 31

By Caroline Salls

Pittsburgh, Aug. 3 – Mood Media’s pre-packaged plan of reorganization was confirmed and took effect on Friday, according to a notice filed with the U.S. Bankruptcy Court for the Southern District of Texas.

As previously reported, Mood Media entered into a restructuring support agreement with some of its lenders, noteholders and equity sponsors on the terms of a pre-packaged financial restructuring plan that will reduce the company’s debt by $404 million, providing financial flexibility and positioning the company for long-term success.

The company said it has received a commitment for up to $40 million of new capital from HPS Investment Partners, LLC and other first-lien term loan lenders.

The first-lien term loan lenders will also receive their share of $200 million of new loans on account of their pre-bankruptcy first-lien term loan claims.

The company intends to pay vendors, suppliers and independent affiliates for goods and services provided before the filing date in the ordinary course of business. Under the terms of the financial restructuring plan, the claims of these parties will be unimpaired.

Mood Media said it also intends to pay vendors, suppliers and independent affiliates under normal terms for goods and services provided on or after the expected filing date.

Holders of existing equity interests will receive no distribution.

Mood Media is an Austin, Tex.-based on-premise and connected media solutions company. It filed bankruptcy on July 30 under Chapter 11 case number 20-33768.

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