has entered into a Restructuring Support Agreement with both the lenders that hold approximately 78% of the company’s outstanding funded debt, and with the holders of a majority of the company’s equity. It has since been updated for CE Pro audiences.For the second time in four years, the parent company of Brink’s Home Security has filed for Chapter 11 bankruptcy protection. This article originally appeared on CE Pro’s sister publication Security Sales & Integration 05.15.23. and Davis Polk & Wardwell LLP are acting as lead advisors for the ad hoc group of lenders. PJT Partners LP, Alvarez & Marsal and Latham & Watkins LLP are acting as lead advisors to the Company. To ensure its ability to continue operating in the ordinary course during the Chapter 11 cases, Monitronics intends to file customary “first day” motions with the Court seeking a variety of relief, including authority to maintain operations in accordance with pre-petition practices and to pay pre-petition claims in the ordinary course of business.Ī copy of the RSA and related cleansing materials can be found on the company’s secure investor portal for current investors who have registered and filed in the company’s Chapter 11 cases. We have strong confidence in the Company and believe Monitronics will emerge an even more dynamic business, well positioned to deliver great value and long-term growth for all its stakeholders.” Monarch Alternative Capital LP Chief Executive Officer Michael Weinstock adds, “We are excited to continue our partnership with Monitronics to support the next stage of its growth trajectory by providing capital, operating expertise, and board leadership. Join us as we discuss the future of digital lighting and control with David Warfel from Light Can Help You and Patrick Laidlaw and Mark Moody from AiSPIRE. Effective communication, education and showcasing the value proposition of LED light fixtures in conjunction with integrative control systems are the keys to overcoming challenges and closing sales in this specialized market. We are genuinely excited about the future.”Īs a custom integrator, lighting is in demand. We also appreciate the support of the Company’s lenders, including the new principal equity investors, Monarch and Invesco. I want to thank our dedicated employees for their hard work and commitment and our valued dealer partners, who are integral to our ongoing success. Niles continues, “Given the level of support we have for this transaction we expect absolutely no impact on our ability to continue serving our customers, partners, and employees. “We are pleased to have reached an agreement with our lenders and shareholders to create a capital structure that is right-sized for our business model.” William Niles, CEO, Monitronics The company will emerge with approximately $600 million in exit financing. The financing will fund Monitronics’ operations during the Chapter 11 proceedings, including the payment of employee wages and benefits, suppliers, partners, and vendors in the ordinary course of business. Monitronics, which monitors more than 800,000 alarm accounts, has received commitments for approximately $387 million in new money financing during the Chapter 11 cases from existing lenders, including $90 million in new money to fund the Chapter 11 process and provide cash to the balance sheet as well as $297 million to refinance the company’s existing Superpriority Revolving Credit Facility and Term Loan. Our Q1 2023 performance exceeded expectations and we are continuing to see tailwinds in our go to market channels.” In 2022, we created 131,000 new subscribers at a 26x creation multiple while concurrently generating 55% EBITDA margins. “The strength of the underlying Monitronics business model positions us for success in a growing market. Our new balance sheet will provide sufficient liquidity to grow our subscriber base at attractive returns and generate levered free cash flow,” said Monitronics Chief Executive Officer William Niles. “We are pleased to have reached an agreement with our lenders and shareholders to create a capital structure that is right-sized for our business model. The plan is to emerge from Chapter 11 within 46 days of filing. Bankruptcy Court for the Southern District of Texas to be commenced on or around May 15, 2023. The restructuring will take place in the U.S. Related: Brinks Rebrands to Focus on Smart Home
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