Catalina Restructures, Gets New Financing in Bankruptcy Court
Catalina has received interim approval for all of its initial motions related to its pre-packaged Chapter 11 restructuring in U.S. Bankruptcy Court. The St. Petersburg, Florida-based company filed voluntary petitions on Dec. 12 for Chapter 11 bankruptcy to reorganize its business.
The court on Dec. 13 granted Catalina interim authorization to access up to $125 million in new debtor-in-possession financing, which will support operations during the court-supervised process. The company also received authorization to continue payment of employee wages and benefits without interruption. Catalina will continue to pay vendors and suppliers in full under normal terms for goods and services provided prior to and after the filing date.
The company's operations outside of the U.S. are not part of the Chapter 11 filing.
"After carefully evaluating our options, we determined that a court-supervised restructuring is the best way to strengthen our financial position for the long term," said Jerry Sokol, Catalina president and chief executive officer, in a media release. "Through this process, we expect to reduce the company's debt by more than 75 percent, giving Catalina a stronger financial foundation."
Catalina estimates it could reduce its debt by about $1.6 billion. The company continues to invest in advanced analytics, data science and technology to improve its custom solutions for clients.
Catalina is known for providing offers digitally and in stores at checkout. The company agreed to part ways with Target at the beginning of the year after a decade of offering in-store printed coupons at the retailer.