Firm, creditors reach deal

Thursday, April 10, 2003 | 9:52 a.m.

The producer of the annual Comdex computer trade show in Las Vegas has reached an agreement with creditors in its federal bankruptcy case.

Key3Media Group Inc., Los Angeles, announced today that it has reached agreement with unsecured creditors to support its reorganization plan after filing for bankruptcy protection in February.

Under the terms of deal, general unsecured creditors will receive a pro rata distribution of $2.5 million cash, 40 percent of the net proceeds of an insurance claim up to a maximum of $4 million and warrants to purchase up to 5 percent of the reorganized company's equity with a strike price at the reorganization value.

Thomas Weisel Capital Partners, which provided $30 million in debtor-in-possession financing for Key3Media, has agreed to forego its pro-rata share of the distributions.

The company is expecting court approval of the plan within two months and is continuing to gear for its Networld + Interop computer trade show in Las Vegas in May and Comdex in November. The Las Vegas Convention and Visitors Authority said earlier that Key3Media is current on its payments, enabling the company to plan for the two shows.

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