Source Interlink Files for Bankruptcy
Source Interlink filed for Chapter 11 bankruptcy this week and reached an agreement with its creditors that will erase about $1 billion of debt. The company will go private.
Source's lenders have agreed to cancel the debt and provide $100 million in additional financing. In exchange, Source has agreed to pay all of its vendors "in full and on time."
The Bonita Springs, Fla.-based company expects to emerge from bankruptcy in 35 days.
According to The New York Post, Citigroup will become "biggest shareholder with about 80 percent of the equity in a new privately held company."