Guitar Center Inc, the largest retailer of musical instruments and equipment in the United States, filed for bankruptcy in Chapter 11 on Saturday as music lovers moved their online shopping during the coronavirus pandemic.
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The trader has agreed to receive a total of $ 375 million in financing from the debtor from its existing lenders and intends to raise $ 335 million in new senior secured banknotes, the company said in a statement.
Earlier this month, the company reached a restructuring agreement with key stakeholders, which includes reducing debt by nearly $ 800 million and new capital investments to $ 1
In a lawsuit, the company said it had between $ 1 billion and $ 10 billion in both assets and liabilities.
GUITAR CENTER ENTERS RESTRUCTURING DEBT CUTTING DEAL WITH $ 800M
Guitar Center, which owns nearly 300 stores across the country, said business operations will continue without interruption.
Milbank LLP was a legal adviser, BRG was a restructuring advisor, and Houlihan Lokey was a financial advisor to the company.
The Guitar Center began in 1959 as a home organ store in Hollywood.
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The company filed for Chapter 11 insolvency with the U.S. Insolvency Court in East Virginia County.
(Report by Radhika Anilkumar in Bengaluru; Edited by Lincoln Pir.)