Trade Mag Publisher Penton Soon to Exit Bankruptcy

Penton Media, publisher of 113 print titles including Supermarket News, Air Transport World and Corporate Meetings & Incentives, is set to emerge from Chapter 11 bankruptcy “within the next few days,” the company announced today.

A New York bankruptcy court has approved Penton’s restructuring plan, which will eliminate more than $270 million in long-term debt and delay maturity on its senior secured credit facility until 2014, the company said. The company’s ownership, management structure and board of directors will not change following the restructuring.

Penton announced it would be filing for Chapter 11 protection on Feb. 9.

Press release after the jump.

New York, NY (Friday, March 5, 2010) – Penton Media (“Penton” or the “Company”), a leading business-to-business media company, announced today that it has received confirmation of its “pre-packaged” plan of reorganization (the “Plan”) from the United States Bankruptcy Court for the Southern District of New York. The Court’s ruling allows Penton to implement the capital restructuring the Company announced on February 9. Penton expects to emerge from Chapter 11 within the next few days with a healthier balance sheet.

The capital restructuring will result in the elimination of more than $270 million of long-term debt and an extension of the maturity on the Company’s senior secured credit facility through 2014. In addition, certain of Penton’s existing shareholders will make a significant new investment in the Company, which will provide additional working capital to fund operations and improve Penton’s overall liquidity.

“This capital restructuring puts us in a much stronger financial position,” said Sharon Rowlands, Chief Executive Officer of Penton. “In addition to improving our balance sheet, it will allow us to utilize our resources to make the necessary investments to grow our business and achieve our long term vision for the organization.”

Penton obtained confirmation of the Plan less than a month after its Chapter 11 filing. “We accomplished our goal of getting through this process quickly and with minimal impact on our employees, customers and suppliers,” said Ms. Rowlands. “These results are a testament to the outstanding effort put forth by the senior management team, Penton’s employees, our Board of Directors, our lenders and our outside professionals. I would also like to thank our customers and suppliers for their support and understanding during our capital restructuring.”

“In addition, to this successful capital restructuring, our entire organization has a lot to be excited about,” said Ms. Rowlands. “Penton’s Natural Products Expo West tradeshow is set to begin on March 11, and we are anticipating record breaking attendance. We recently completed a redesign project on several cutting edge web properties and will soon launch those sites. Our editorial teams have received numerous industry awards in recent weeks, and we are extremely proud of their exceptional work. Finally, our custom marketing solutions business is rapidly expanding and our other businesses are increasing their market share. All of this demonstrates that Penton’s commitment to growing our business and improving the products and services we offer our customers is paying off.”

Upon its emergence, Penton will have the same ownership structure, and its senior management team and Board of Directors will remain intact. Ms. Rowlands said, “Penton’s equity owners, Board of Directors, management team, and the entire staff are determined to build Penton into a stronger, more successful company.”

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