Muzak Holdings LLC, the Fort Mill, S.C. provider of background music to businesses, today announced it has filed for Chapter 11 bankruptcy protection so it can restructure its debt.
The company had $105 million in secured bank debt that was due today, part of $440 million worth of debt due between February and March. Last month, Muzak said it had received a 22-day extension on the $105 million debt. The company said today that it and Muzak's major creditor constituencies are committed to completing restructuring negotiations.
“Muzak is a solid business with an outstanding customer base, but we are burdened with substantial debt obligations established over a decade ago,” Chief Executive Officer Stephen Villa said in a statement. “We intend to move through this process as quickly as possible and we firmly believe that this course of action will better position Muzak for long-term success.”
Muzak has 1,250 employees, including 550 in Fort Mill. It designs and installs professional sound systems for businesses, and provides other services, such as promotional music for corporate branding.
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