Modspace Completes Financial Restructuring

March 2, 2017

On March 2, 2017, the plan of reorganization of Modular Space Holdings, Inc. and certain of its affiliates (ModSpace), the largest U.S.-owned provider of modular office solutions, became effective and ModSpace emerged from Chapter 11 bankruptcy.

The restructuring plan was confirmed by Judge Kevin J. Carey of the U.S. Bankruptcy Court for the District of Delaware on February 15, 2017, only 42 days after ModSpace filed for Chapter 11. Additionally, Justice Frank J.C. Newbould of the Ontario Superior Court of Justice entered a recognition order acknowledging the effectiveness of the plan with respect to ModSpace’s Canadian operations on February 21, 2017.

The plan, which was the result of months of negotiations among ModSpace, its first-lien secured lenders, its second-lien secured noteholders and equity holders, substantially deleveraged ModSpace leaving it well positioned for the future. Under the plan, approximately $400 million in secured notes were converted into equity in the reorganized company, and an additional $90 million was invested through a rights offering backstopped by certain holders of the secured notes. It also provided for payment in full of ModSpace’s $719 million debtor-in-possession financing facility, and the effectiveness of a new $640 million asset-backed exit financing facility. The restructuring plan was unanimously approved by all classes entitled to vote.