According to an article on The Book Standard Website, Musicland Group is asking its creditors to defer payment on 40-50% of its payables for three years, receiving either a note or preferred stock in return. This comes in the wake of the announcement that the company plans to shut down its Media Play division (see 'RIP Media Play') by late January. The company is also planning to ask for rent concessions on space for 110 money-losing Sam Goody and Suncoast locations next year, according to the article, and will close those for which it is unable to reduce its costs. The deferred payables would free up $125 million in cash for the company; the owners also plan to raise $50 million in new equity to help recapitalize the company.
To Assist Restructuring
Posted by ICv2 on December 15, 2005 @ 11:00 pm CT
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