Court approves Cygnus bankruptcy plan
Cygnus Business Media, Inc., a Fort Atkinson-based business-to-business media company, announced that the U.S. Bankruptcy Court for the District of Delaware has confirmed the company’s joint pre-packaged Chapter 11 bankruptcy organization plan.
In confirmation clears the way for the company to emerge from Chapter 11 bankruptcy protection in the coming weeks.
Cygnus Business Media filed for reorganization Aug. 3 after being unable to reach agreement with one of its 24 lenders on a financial restructuring plan. The pre-packaged plan approved by the court calls for the restructuring of secured debt by converting a portion to equity, providing a more serviceable debt level and a stronger balance sheet. It also provides that all general unsecured creditors, including all vendors, of Cygnus Business Media will be paid in full in the ordinary course.
"The associates of Cygnus Business Media have continued to provide high quality media and products that effectively serves our advertisers, exhibitors, subscribers, attendees and readers throughout this process," said Charles Carnaval, chief executive officer of Cygnus Business Media. "We have had full support of our advertisers and vendors which has provided a great deal of stability and focus. We look forward to emerging as a much stronger company financially and will continue to provide the best in business-to-business media. I want to take this time to thank all of our employees for their ongoing hard work, to our vendors for their continued support, and to our advertisers for placing their faith in our products."