San Jose Bankruptcy Attorney Talks About Muzak Bankruptcy
San Jose Bankruptcy Attorney Talks About Muzak Bankruptcy
The current recession is hitting all areas of the economy including companies that people love to hate. If the economy does not recover soon, then people may have to ride elevators without the calming string versions of their favorite rock songs because the company who makes elevator music, Muzak, filed for Chapter 11 Bankruptcy in February. The company missed a large payment of over $100 million dollars to it creditors.
Muzak was a wonder story by itself as its cash flow has doubled over the last three years which shows that demand for soothing sounds is still strong. The company also makes on hold messages systems, install sound systems, and drive through systems for retail buildings. Oddly enough, the company states that the weakening global economy was not a factor for its bankruptcy filing as it has solid cash flow and rising profits. However, Muzak has several hundreds of millions of dollars of debt due this year and the tightening credit market surely had some play because Muzak (along with most companies) will find banks reluctant to issue more credit.
As a reminder, a Chapter 11 Bankruptcy does not mean that Muzak has closed its doors but rather that it will be given time to restructure its debt. This may mean a reduction of debt or a new repayment plan. Once the debt is restructured, Muzac should emerge a leaner and more profitable company. Plus, elevator rides are extremely boring without our familiar Muzac.
If you have a question regarding Bankruptcy please contact Sagaria Law at 1-800-941-6730 for a free consultation or visit us at www.sagarialaw.com. Our team of Bankruptcy Lawyers can assist you with all aspects of your case. If you are have questions about filing a chapter 7 bankruptcy, a chapter 13 bankruptcy, lien stripping, discharging debt, etc. we can help! We have bankruptcy attorneys in San Mateo, Fremont, Sacramento and San Jose.
