Guitar Center Inc., the largest US retailer Filed for Music Instruments and Equipment Chapter 11 Bankruptcy During Saturday, as music lovers moved their shopping moved online Nationwide epidemic of corona virus.
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The retailer has negotiated a total of 5 5555 million in debtor-in-possession financing from existing lenders and the company wants to raise 5 55.5 million in new senior secured notes, the company said in a statement.
Earlier this month, the company entered into a restructuring agreement with major shareholders, including a $ 800 million reduction in the company’s recap capitalization and new equity investments of up to equ 165 million.
The company, which filed in court, said it has between 1 1 billion and 10 10 billion in both assets and liabilities.
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The Guitar Center, which has about 300 stores across the country, said business operations would continue without any interruptions.
Millbank LLP served as legal advisor, BRG served as restructuring advisor and Houlihan Loki was the company’s financial advisor.
The Guitar Center began in 1959 as a homegrown store in Hollywood.
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The company filed for Chapter 11 bankruptcy in the United States Bankruptcy Court in the Eastern District of Virginia.
(Reporting by Radhika Anilkumar in Bengaluru; Editing by Lincoln Fist.)
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