Wilmington, DE – Cygnus Business Media said it expected to restructure its debt load and emerge from Chapter 11 bankruptcy around mid-September.
The struggling company, which organizes exhibitions and farm shows and also publishes a portfolio of B-to-B publications and online products in 13 market sectors, filed for Chapter 11 on August 3. Operations are expected to continue uninterrupted during the coming restructuring.
The goal of the restructuring is to rearrange Cygnus’ debt load. A secured debt-equity exchange plan was approved in advance by all but one of the company’s 24 creditors.
“During the Chapter 11 process, the company will be fully capable of meeting its obligations in the ordinary course,” said Cygnus CEO Charles Carnaval. “Management is confident that this process will result in a less leveraged company that is well-suited to compete in a challenging economy.”
“We have sufficient funds to support our working capital needs,” said Carnaval. “In addition, our court pleadings call for full support to customers and critical vendors.”
Carnaval is a director with the New York turnaround firm Zolfo Cooper. He took over the duties of CEO of Cygnus in January as part of the effort to get the company back on course.
The company established a page on its website that is devoted to the restructuring and includes the various court documents filed with the U.S. Bankruptcy Court in Wilmington, DE. Additional information can also be obtained by calling (866) 397-6090