New York, NY — Ziff Davis Media Inc. announced it had reached an agreement with its debt holders on a reorganization plan that should allow the company to emerge from Chapter 11 bankruptcy in June.
Representatives of both secured and unsecured creditors approved a plan on April 29 that would convert $428 million in funded indebtedness into new common stock and a new note that would not exceed $57.5 million.
Ziff Davis Media CEO Jason Young said the creditors agreed to the deal in part due to confidence in the company’s future. “We are poised to capitalize on the recent digital momentum that we are experiencing, as shown through the unique visitor growth in the first quarter, which grew by more than 20% over the first quarter of last year,” Young said. “We look forward to emerging quickly from Chapter 11 so that we can put our complete focus on operating our business and continuing our strong digital momentum.”
Ziff Davis Media, which is a separate company from Ziff Davis Enterprise, produces the DigitalLife and Electronic Gaming Summit events, publishes PCMagazine and runs a portfolio of online properties catering primarily to high tech audiences. The company has struggled with a large debt load since its acquisition by Willis Stein & Partners in 2000. There was no indication of any layoffs or changes in the events operations.