Deluxe Entertainment Services Group Inc. won court approval Thursday of a bankruptcy plan that removes owner Ronald Perelman and puts senior lenders in control of the video services company, WSJ Pro Bankruptcy reported. Bankruptcy Judge Robert Drain approved the prepackaged chapter 11 reorganization, which will allow Deluxe to implement its financial restructuring, the company said in a news release. Under the plan, Deluxe’s long-term debt will be reduced by more than half and the company will have access to $115 million of new financing to support its ongoing operations and investments in services and technology, the company said. Deluxe will be owned by a group of its existing lenders, including Sound Point Capital Management, CION Investments, CIFC Asset Management and Invesco Ltd. The Los Angeles-based, century-old company said that it intends to complete its financial restructuring plan and successfully emerge from bankruptcy with a stronger balance sheet and enhanced liquidity. Earlier this month, Deluxe filed for bankruptcy with a prepackaged plan to swap all of its term-loan debt for all of the equity in the reorganized company. Deluxe filed for court protection facing maturity dates on about $780 million in debt in the next year.
