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Jefferies, FTI Advise Classic Party Rentals in Pending Asset Sale

February 14, 2014, 07:33 AM
Filed Under: Bankruptcy

Classic Party Rentals (“Classic”), a leading event rental and services provider, announced that it is in the final stages of completing an agreement through which substantially all of the Company’s business of Event Rentals, Inc. and its subsidiaries, d/b/a Classic Party Rentals, would be acquired.

“We are very close to signing an agreement that will put our financial challenges in the past, substantially reduce our debt and provide a stronger foundation for our future,” said Jeff Black, Classic Party Rental’s President and Chief Executive Officer. “Importantly, we expect to accelerate and increase our investment in the business, our people and our clients, refreshing and growing our inventory and further enhancing the support and innovative solutions we provide for our clients."

To facilitate the expected sale transaction, Classic today filed voluntary petitions for relief under chapter 11 of the United States Bankruptcy Code. The Company fully expects to operate its overall business as usual and uphold its commitments to stakeholders during the chapter 11 process:

  • All upcoming and future events that are currently scheduled with Classic will be fulfilled with the same premier customer service that clients have come to expect from the nation’s largest full service event rental company.
  • Sales support and customer service will remain at the exemplary levels that the Company’s clients have experienced in the past.
  • Classic will pay vendor partners in the ordinary course for goods and services received subsequent to the commencement of the Chapter 11 process and plans to expand its investment into innovative products and services during such period.

Classic has a commitment for $20 million in debtor-in-possession (“DIP”) financing, which the Company anticipates to be more than sufficient funding during the process to complete the expected sale transaction process. This financing, in addition to Classic’s existing resources, will ensure Classic is able to continue meeting all of its financial obligations while the Company is in chapter 11.

As part of the planned sale transaction through chapter 11, the expected agreement will be subject to a court-supervised process that will solicit additional offers for Classic to ensure the Company achieves the highest and best offer for its business. Classic will evaluate any competing offers it may receive, and any competing offer accepted would only improve upon the current expected agreement.

The expected transaction will be subject to the approval of the Bankruptcy Court and the satisfaction of customary closing conditions. Upon completion, Classic expects to be financially and operationally stronger – with more extensive product and service capabilities and outstanding customer service.

Classic Party Rentals is advised in this transaction by Jefferies LLC, FTI Consulting, and White & Case LLP.

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