Penton Media could emerge from bankruptcy next week; plan confirmed

By Lisa Kerner

Charlotte, N.C., March 5 - Penton Media, Inc.'s plan of reorganization was confirmed by the U.S. Bankruptcy Court for the Southern District of New York at a hearing on Friday, according to an attorney close to the case.

The attorney said Penton expects to emerge from bankruptcy next week.

As previously reported, plan creditor treatment will include:

• Holders of priority claims will be paid in full in cash;

• Holders of first-lien term loan claims and first-lien revolver claims will be treated in accordance with the amended and restated first-lien loan documents;

• Holders of second-lien claims will receive either cash or stock equal to 15% of their claims and be eligible to participate in the rights offering;

• Other secured claims, intercompany claims and subsidiary debtor equity interests will be reinstated;

• Holders of general unsecured claims will be paid in full in cash;

• Holders of holding company equity interests will receive no distribution; and

• Holders of holding company investor equity interests will, if requested by the reorganized company, retain those interests in lieu of receiving stock in connection with the second-lien lender elections. The retained interests will be valued in the same manner as the stock offered in the rights offering. Otherwise, the interests will be extinguished.

Penton is a New York-based business-to-business media company. The Chapter 11 case number is 10-10689.

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