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Guitar Center Enters Restructuring Pact to Cut Debt by $800 Million

Niluksi Koswanage
·1 min read

(Bloomberg) -- Guitar Center entered into a restructuring support agreement that includes up to $165 million in new equity investments and a reduction of debt by nearly $800 million, according to a statement.

The musical instrument retailer inked the agreement with stakeholders such as including its equity sponsor, a fund managed by the Private Equity Group of Ares Management Corporation, new investors Brigade Capital Management and a fund managed by The Carlyle Group, as well as supermajorities of its noteholder groups.Agreement intends to allow Guitar Center and its brans to continue to operate in the normal course of business/Guitar Center expects to file voluntary petitions for reorganization following Chapter 11 in the U.S. bankruptcy court. Guitar Center has negotiated to have a total of $375 million in debtor-in-possession financing provided by certain of its existing noteholders and lenders.Earlier, Guitar Center Is Said to Prep Bankruptcy With Creditor SupportTo view the source of this information click here

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