small business alarm systems
Ascent Capital Group Inc. reported that the company is confident, based on the support agreement reached with its largest creditors, that it will be able to meet its financial commitments and otherwise continue to operate its business as usual throughout the restructuring period, including paying its employees, dealers and suppliers in the normal course of business and providing home security to all of its customers. As part of the anticipated chapter 11 process, the company has secured a commitment for $245 million in debtor in possession DIP financing that will be replaced by $295 million in exit financing at the completion of the reorganization. The support agreement contemplates that all trade claims whether arising prior to or after the commencement of the voluntary chapter 11 cases will be paid in full in the ordinary course of business, and that the company will continue operating its business without disruption to its customers, vendors, partners or employees. Ascent will, subject to, among other things, the receipt of the requisite approval of Ascent’s stockholders, merge into Monitronics. As a result of the merger, all assets of Ascent, including an anticipated approximately $23 million in cash, will become assets of Monitronics.