UniTek Global Services announced it received the support of all of its lenders, including among others affiliates of Littlejohn and New Mountain Capital, collectively representing 100% of its secured debt for its previously announced prepackaged restructuring plan.
After a solicitation process, the company obtained votes in favor of the Plan from all members of all three classes entitled to vote. With this committed support, as well as the support of the parties, including DIRECTV, to the previously announced plan support agreement, today the Company and its subsidiaries have filed voluntary petitions for Chapter 11 protection with the U.S. Bankruptcy Court for the District of Delaware.
During the bankruptcy proceedings, the company expects to operate its business in the ordinary course, without disruption to its customers, vendors or employees. The terms of the restructuring plan provide for a substantial reduction of secured debt through a debt-for-equity “swap” in which over 40% of the existing term debt will be exchanged for equity in the company, as well as a substantial reduction in cash interest rate. In addition, the lenders have agreed to advance up to $43 million of new capital to support the company’s recapitalization. All valid unsecured creditors’ claims on UniTek and its subsidiaries will be assumed in the ordinary course of business and unimpaired.
The company is requesting bankruptcy court approval of its restructuring plan as quickly as possible. In the filing, the company plans to request a hearing in early december to approve the plan and to set an expedited schedule for the Company’s emergence from Chapter 11.
UniTek Global Services is a provider of communications infrastructure solutions.