RealTime IT News

Ziff Davis Debt Restructure Continues

Looking to wriggle its way out of a huge debt burden, Ziff Davis Media on Monday announced yet another agreement with bank lenders aimed at restructuring the company's $250 million of 12 percent senior notes.

Ziff Davis, which publishes the eWeek and Yahoo! Internet Life titles, said it had reached an agreement in principle with holders of approximately 90 percent of the outstanding loans under its senior credit facility.

Monday's announcement, which was devoid of specifics, said the proposed amendment provides for Ziff Davis' existing senior credit agreement to be amended and restated, subject to certain customary conditions, "including the final approval by all of the lenders and the completed restructuring of the Company's $250 million of 12% senior subordinated notes."

Ziff Davis said the deal would put it on track to complete its financial restructuring by the end of the summer.

Just last month, Ziff Davis its majority shareholder Willis Stein & Partners III patched up their differences in a major restructuring that included $80 million in cash and a 60 percent write-down on its junk bonds.

The financial restructuring moves is seen as necessary to ensure the survival of the company, which has teetered on the edge of bankruptcy after the contraction in the tech-based advertising sector.

In March, the company hammered out a last minute deal to extend the credit line it arranged to keep from defaulting on its loans. The credit facility is part of a $16 million forbearance agreement which was secured to help Ziff Davis meet a $15 million twice-yearly coupon payment on a $250 million bond.