Tuesday, February 09, 2010
Penton Files Chapter 11
FOH online: "Trade publisher Penton Media - publisher of audio, installation and production titles including Mix, Live Design and Sound & Video Contractor and producers of the annual LDI show - announced that it is filing a 'strategic' Chapter 11 bankruptcy."
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A "strategic chapter 11 filing" might be beneficial for Penton, but what about the holders of their debt that is about to be restructured into worthlessness? If a company extends credit they do so with the expectation of being repaid, if a company can go into a pre-arranged debt restructuring in order to get rid of it then what incentive is there for the lenders to give credit the next time? Now perhaps the creditors have some involvement with the pre-arranged plan, but there's no mention of that in the article.
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