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Questex Reaches Agreement With Lenders on Restructuring

7 Oct, 2009 Response This Week

NEWTON, Mass. – Questex Media Group Holdings Inc., parent company of Response and 22 other print magazines, is restructuring in an agreement with its lenders to reduce debt.

The company’s management remains in place, and it will continue to conduct business as usual. The restructuring will have no effect on the day-to-day operations of Response Magazine, Response Expo or the Direct Response Marketing Alliance (DRMA).

The Newton, Mass.-based company – which also sponsors 28 conferences and has more than 150 trade Web sites – filed for Chapter 11 bankruptcy in the U.S. Bankruptcy Court for the District of Delaware on Monday.

However, based on the strength of the company’s business plan, senior lenders have already committed financing as part of the filing, including both debtor-in-possession (DIP) financing and exit financing.

 “We are pleased with the strong support we have received from our lenders and business partners for a restructuring that will allow us to reduce our debt and achieve a strong, sustainable capital structure,” says Questex CEO Kerry Gumas. “Questex has attractive assets, marketing-leading brands, a great talent base of professionals and a track record of performance that has allowed us to continue to generate strong cash flows. This restructuring will better position the business for future growth for the benefit of all the company’s stakeholders.”

A group of the company’s senior lenders have entered into an agreement to serve as the stalking horse for a purchase of substantially all of the assets of the company pursuant to a 363 sale.  The company expects the process to be completed within 60 days.

The first priority for the Response brand and the entire Questex family of properties will remain its valued customers and providing them with the same quality products and services that they have come to expect.

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