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
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.