UPDATE 2-Muzak emerges from bankruptcy

*Muzak emerges from Chapter 11

*Silver Point has become majority owner of company

*Restructuring seen as sign of changes in credit markets

(Adds comments from lawyers, background)

By Emily Chasan

NEW YORK, Feb 1 (BestGrowthStock) – U.S. music and entertainment
company Muzak Holdings LLC [MUZKH.UL] said on Monday it had
emerged from bankruptcy protection, having restructured its
debt in about a year.

Investment firm Silver Point Capital, which was the
company’s largest creditor at the time of the bankruptcy
filing, has become the majority equity owner of the reorganized
company, it said.

Muzak, which is known for its background music in stores,
hotels and elevators, sought court protection from creditors
last February to restructure maturing debt in the midst of the
credit crisis.

The company cut its debt by more than half to $230 million
during the bankruptcy.

“We filed for Chapter 11 with no plan on the table at all,
and in less than a year we were able to achieve a fully
consensual restructuring,” said Edward Sassower, an attorney at
Kirkland & Ellis who represented the company during the
bankruptcy.

The company also has a $108.75 million exit finance
facility from GE Capital Restructuring Finance, Silver Point
and MFC Global Investment Management.

“The capital markets have really opened up since the time
that the company filed, and this company was able to obtain
exit financing, which it wouldn’t have been able to do
earlier,” said Josh Sussberg, another attorney at Kirkland &
Ellis who worked on the restructuring.

Muzak said it would divide the company into three divisions
that will focus on media, sensory branding and technical
systems.

Law firm Kirkland & Ellis and financial adviser Moelis & Co
advised Muzak on its bankruptcy.

Stock Research

(Reporting by Emily Chasan; Editing by Steve Orlofsky and
Robert MacMillan)

UPDATE 2-Muzak emerges from bankruptcy