Alarm system provider Monitronics has filed bankruptcy to implement a restructuring plan that would reduce its $1.8 billion debt burden by nearly half.
The plan negotiated with creditors would eliminate $885 million of debt, including the $585 million principal amount of senior unsecured notes, which will be converted to equity.
Lenders have also agreed to provide Monitronics with $245 million in financing to keep it operating during the Chapter 11 process and $295 million in exit financing at the completion of the reorganization.
Monitronics, a subsidiary of Ascent Capital Group, provides monitored home and business alarm systems to about 922,000 customers under the Brinks Home Security brand. It has an exclusive, long-term licensing agreement with Brinks Co.