TPx, a nationwide managed services provider, reached an amended and restated restructuring support agreement with its existing sponsor and holders representing a significant majority of the company’s outstanding funded debt, positioning the company for its next phase of growth. The agreement strengthens TPx’s financial foundation by providing a commitment for recapitalization and elimination of significant debt that will allow TPx to continue to build upon positive EBITDA and free cash flow growth.
“This agreement with our lenders marks a substantial step forward for TPx,” Shaun Andrews, CEO of TPx, said. “It gives us the flexibility to accelerate our strategy, increase investments that grow the business and deliver exceptional managed services to our customers. We’re energized by the opportunities this creates and the path ahead.”
To implement the agreement, TPx and certain of its affiliates have filed voluntary petitions under Chapter 11 of the U.S. Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas. Throughout the process, TPx will continue to operate in the ordinary course.
In connection with this process, the company has received new financing commitments, including DIP financing and exit financing from its existing lenders to provide the company with sufficient liquidity to support the business throughout the Chapter 11 process and beyond.
TPx has filed customary “first-day motions” with the court to support a seamless transition into Chapter 11 without disruption and will continue operating as usual, meeting its obligations and maintaining strong relationships with vendors and technology partners to ensure the high-quality service customers expect.
TPx is advised in this matter by Sidley Austin as legal counsel, Portage Point Partners as financial advisor, with Steven Shenker serving as chief restructuring officer, PJT Partners, as investment banker, and FTI Consulting as communications advisor. An ad hoc group of lenders is advised by Davis Polk & Wardwell as legal counsel, Haynes & Boone as local counsel and Guggenheim Securities as financial advisor.
