Modular Space Corp. has filed for protection from creditors in the U.S. and Canada, to implement a plan to rework its $1 billion load of long-term debt, the Wall Street Journal reported today. Business will continue as usual during what is expected to be a brief bankruptcy stay for ModSpace, which makes, leases and sells office trailers, mobile offices, temporary classrooms, modular office complexes and portable storage units. A restructuring that will cut into the debt load by swapping out about $400 million worth of debt for equity was negotiated in advance of the bankruptcy filing in the U.S. and the initiation of Canadian restructuring proceedings in Toronto. ModSpace launched workout talks after a $1.75 billion merger with Williams Scotsman International Inc. fell through in August, after some backers dropped out to cope with the effects of Britain’s exit from the European union, court papers say.
