Mood Media Details Plans For Chapter 11 Bankruptcy Filing

July 3, 2020 by Dave Haynes

The on-premise media solutions company Mood Media has started a process that would lead to it filing for bankruptcy and reorganization by the end of the month.

The company, based in Austin, TX, says it will continue to operate while all this happens.

If you have a  finance or corporate legal background, this will make more sense to you than me and most mere mortals, but here’s the official PR statement …

Mood Media, the world’s leading on-premise and connected media solutions company dedicated to elevating the Customer Experience, today announced that it has entered into a comprehensive Restructuring Support Agreement (the “RSA”) with certain of its lenders, noteholders and equity sponsors on the terms of a “prepackaged” financial restructuring plan that will reduce the Company’s debt by $404 million, thereby providing financial flexibility and positioning the Company for long-term success. Currently, more than 90% of the Company’s first lien term loan lenders, more than 70% of its second lien PIK noteholders, and over 60% of the Company’s equity sponsors have signed up to the RSA.

To implement the RSA, the Company is initiating a process to solicit approval of the “prepackaged” financial restructuring plan from its lenders and noteholders. Following the solicitation, no later than July 30, 2020, the Company expects to file voluntary petitions for reorganization under Chapter 11 of the United States Bankruptcy Code in the United States Bankruptcy Court for the Southern District of Texas, with a confirmation hearing scheduled for July 31, 2020. The Company’s international subsidiaries will not be part of the contemplated Chapter 11 filing.

The Company will continue operating throughout the contemplated court-supervised process with a primary focus on the health and safety of its employees, independent affiliates and clients. Mood Media intends to build on its structure, support and resources to continue serving its clients as they manage through the global COVID-19 pandemic and over the longer-term once the pandemic has passed.

“We recognize this is a unique and unprecedented time for our team members, our clients and our Company,” said David Hoodis, Chief Executive Officer of Mood Media. “Like many others, we have taken difficult but necessary steps to protect our business and preserve liquidity. We are now taking action to provide a clear and expedited path to strengthen our financial position, address our debt levels and enable us to be an even better partner to our clients as the world’s leading on-premise and connected media solutions Company. We appreciate the support of our financial stakeholders, which we believe represents their confidence in our business and will enable us to move through the process on an expedited basis.”

Mr. Hoodis continued, “We thank our clients for their continued support during this unprecedented time, and we are truly grateful for their business. We look forward to working alongside our clients as they begin to open their businesses again and welcome back their employees and customers. I would also like to thank the engaged Mood employees and our independent affiliates, many of whom have been impacted by the actions we’ve been taking to protect our business over the last several months. Their continued resiliency and dedication to our clients and to each other will enable us to succeed now and well into the future.”

In connection with the expected court-supervised process, the Company has received a commitment for up to approximately $240 million in new financing, including $40 million of new capital, from HPS Investment Partners, LLC and other first lien term loan lenders. The new financing will be subject to Court approval and, together with cash generated from the Company’s ongoing operations, is expected to provide ample liquidity for the Company to continue operating in the ordinary course during and after the contemplated court-supervised process.

Subject to Court approval, the Company intends to pay vendors, suppliers and independent affiliates for goods and services provided prior to the expected filing date in the ordinary course of business. Pursuant to the terms of the financial restructuring plan, which will also be subject to Court approval, vendors’, suppliers’ and independent affiliates’ pre-petition claims will be unimpaired. The Company also intends to pay vendors, suppliers and independent affiliates under normal terms for goods and services provided on or after the expected filing date.

There is a website that is focused on the restructuring plans, as well as a Restructuring Hotline at (877) 606-3614 (toll-free in the U.S.) or (949) 569-5201 (for calls originating outside the U.S.).

Documents and materials related to the solicitation are available on a separate website administered by Mood Media’s claims agent, Prime Clerk, at

Not surprised by this. Mood services the retail sector and a LOT of its revenue comes from in-store audio. With retail closed or wheezing badly in Q2 because of the pandemic, you can assume a lot of retail clients were not paying their monthlies because they were 1) closed and 2) running on cash-flow fumes.

Mood has as many as 1,000 staffers globally, and I suspect they have done or will do some serious layoffs, unfortunately.

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