As it progresses through a bankruptcy filing, Muzak Holdings LLC said today it has more than $35 million cash on hand, which it called “sufficient to support the business.”
That was the amount the Fort Mill, S.C., background music provider said it had as of last Thursday. It had about $22 million cash on hand when it flied for bankruptcy protection in February, Chief Financial Officer Dodd Haynes said in an interview.
Under bankruptcy protection, the company has not had to pay certain expenses, he said, such as interest on non-secured debt.
Muzak cited total assets of $324 million and total liabilities of $465 million when it filed for Chapter 11 bankruptcy protection. The company had been burdened by decade-old debt; the bulk of $460 million in debt had been due between February and March.
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Muzak intends to file a reorganization plan with the bankruptcy court by mid-June, Haynes said. The company said it is continuing to maintain normal operations, reduce costs and improve service.
“We believe that we are taking the right steps to position the company for long-term success,” Chief Executive Officer Stephen Villa said in a statement.
Haynes said Muzak's net revenue for 2008 was $248.9 million, a slight decrease from its $250.2 million total for 2007. Muzak said that going forward, it no longer intends to announce quarterly or annual earnings.
The privately held company, which is marking its 75th anniversary this year, designs and installs professional sound systems for businesses, among other services. Its programming reaches more than 100 million people every day, Muzak said.