(Reuters) – Guitar Center Inc, the largest US retailer of musical instruments and equipment, has reached a restructuring agreement with key stakeholders that includes a nearly $ 800 million debt reduction, the company said in a statement.
The retailer signed the Restructuring Support Agreement (RSA) with its stock sponsor, a fund managed by a private equity firm Ares Management LP (N :), new investor Brigade Capital Management and a fund managed by Carlyle Group (O 🙂 as well as super majorities of his noteholder groups.
The agreement includes new equity investments of up to $ 165 million to recapitalize the company, the retailer said.
The company anticipates that after Chapter 11 it will voluntarily file with the US bankruptcy court for restructuring in order to carry out the pre-designed financial restructuring plan.
Business will continue without interruption of the contract, according to Guitar Center, which has nearly 300 stores nationwide.
In 2017, the company looked for ways to restructure its $ 1.3 billion debt load when music lovers misplaced their online purchases.
The Guitar Center began as an organs store in Hollywood in 1959.
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