Deluxe Entertainment has received Court approval of its pre-packaged Chapter 11 plan of reorganisation and intends to complete the enclosed restructuring transactions to successfully emerge from Chapter 11.
Deluxe filed bankruptcy earlier this month and said it plans to emerge from the pre-packaged Chapter 11 court process with a much stronger balance sheet. Following the implementation of the financial restructuring, Deluxe’s long-term debt is said to be reduced by more than half, granting the company access to $115 million of new financing to support its ongoing operations and investments.
John Wallace, Deluxe CEO, said: “This is an important milestone for Deluxe — we have a strengthened balance sheet and new capital to continue our investments in services and technology. Deluxe will be in its strongest financial position in more than a decade, with the resources to lead the industry into the future.
“We are incredibly grateful for the ongoing support we received from our employees, customers, vendors and other business partners during the last few months and are very pleased to have achieved what we set out to do when we began the refinancing process.”