• Folio, Monday, August 3, 2009 10:18 PM

Trade publisher Cygnus Business Media will be restructuring under Chapter 11 Bankruptcy, which will result in a secured debt-equity exchange to reduce the company's debt. The publisher had reached an agreement with 23 of its 24 lenders on a pre-packaged restructuring plan, but the out-of-court settlement required a unanimous decision, so bankruptcy became inevitable.

Cygnus says it expects to emerge from Chapter 11 within 45 days. Under the plan, Cygnus' secured debt will be reduced from $180 million to $60 million. GE Commercial will own the majority of the company.

In mid-June, Cygnus laid off about 12% of its overall workforce and suspended publication of several of its titles. Modern Jeweler, RV Trade Digest and Wood Digest are among them, say insiders. In March, Cygnus consolidated the company's production and design teams and suspended publication of Photo Trade News and Studio Photography.

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