Troika Media files for Chapter 11 bankruptcy, announces sale to Blue Torch

Troika Media has announced that it has entered into a restructuring support agreement with certain funds managed by Blue Torch Finance, the company’s senior secured lenders, pursuant to which Blue Torch would acquire substantially all of the assets of the company via a stalking horse credit bid. To facilitate the acquisition and the restructuring of the company’s balance sheet, the company and certain of its affiliates have filed voluntary petitions for relief under chapter 11 in the United States Bankruptcy Court for the Southern District of New York. The company is seeking approval of the proposed stalking horse credit bid pursuant to section 363 of the United States Bankruptcy Code. The stalking horse credit bid will be subject to competing bids via a court-supervised auction to ensure the highest or best possible price for the company’s business. The company’s secured lenders are supportive of the transaction and have committed to provide $11M of debtor-in-possession financing. The company anticipates that this financing, as well as cash generated from ongoing operations, will be more than sufficient to fund its business operations through the sale process, which it expects to conclude within the next few months.