Key3Media in Pact With Creditors
From a Times Staff Writer
Key3Media Group Inc. said it reached an agreement with its unsecured creditors on a payment plan. Unsecured creditors will receive a total of $2.5 million in cash, 40% of the proceeds of an insurance claim up to $4 million and warrants to purchase up to 5% of a reorganized Key3’s shares.
Key3, which produces technology trade shows such as Comdex, filed for Chapter 11 bankruptcy reorganization in February. The repayment plan was approved by San Francisco merchant bank Thomas Weisel Partners, Key3’s largest creditor. Weisel will own Key3 when it exits bankruptcy in the next two months.
