UniTek Global Services emerges from bankruptcy under new ownership

By Caroline Salls

Pittsburgh, Jan. 13 – UniTek Global Services, Inc. emerged from Chapter 11 bankruptcy Tuesday “with significantly less debt,” according to a news release.

UniTek said it is now majority owned by New Mountain Finance Corp. and entities managed by Littlejohn & Co., LLC.

Under the plan of reorganization confirmed by the U.S. Bankruptcy Court for the District of Delaware on Jan. 5, the company said New Mountain Finance, Littlejohn and UniTek’s other lenders invested new capital to support its recapitalization, and all valid unsecured claims were either paid in full or assumed in the ordinary course of business and left unimpaired.

Additionally, UniTek said it reduced the par amount of its existing secured debt by more than 40% through a debt-for-equity swap and achieved a substantial interest rate reduction on its remaining debt.

As previously reported, at the end of October UniTek announced that it reached an agreement with its lenders, including affiliates of Littlejohn and New Mountain Capital, on the terms of a comprehensive debt restructuring.

Restructuring terms

Specifically, portions of UniTek’s secured debt will be converted into a new first-lien debt facility and portions into 100% of the equity in the reorganized company.

In addition, the lenders agreed to advance up to $43 million of new capital to support UniTek’s recapitalization.

All valid unsecured claims will be assumed in the ordinary course of business and unimpaired.

Subordinated creditors and holders of existing UniTek interests will receive no distribution.

In addition to the restructuring agreement, the company, the lenders and UniTek’s largest customer, DirecTV, entered into a plan support agreement.

Under a plan support agreement with all of UniTek’s revolving and term loan lenders, the company will become a private company entirely owned by its lenders, upon completion of the restructuring.

Parties to the agreement include affiliates of PennantPark Floating Rate Capital Ltd., Cerberus Capital Management, LP and Marblegate Asset Management, LLC

In addition, the company said Tuesday that John Haggerty was appointed interim chief executive officer, succeeding Rocky Romanella.

UniTek, a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries, filed for bankruptcy Nov. 3. The Chapter 11 case number is 14-12471.

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