New York-based Conscious Content Media and its affiliates on Wednesday filed for Chapter 11 bankruptcy protection in Delaware, disclosing more than $205 million in debt and unveiling a restructuring plan supported by prepetition noteholders.
The filing encompasses Conscious Content along with four affiliates — CCM Merger Sub II Inc., CodeSpark Inc., KidPass Inc., and Little Passports Inc. — reporting between $100 million and $500 million in assets and liabilities, according to a first-day declaration by CEO Neal Shenoy.
Debt Composition and Restructuring Plan
The company’s $205.5 million debt consists of $99.84 million in Magnetar senior secured notes, $11.38 million in 2023 senior secured bridge notes, and $56.8 million in unsecured post-closing notes.
On Dec. 16, Conscious entered into a restructuring support agreement with prepetition noteholders, including Magnetar Capital and secured convertible noteholders. This agreement underpins the Chapter 11 plan, which aims to:
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Eliminate about $106.5 million in debt and related interest obligations
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Provide at least $20 million in new capital to fund restructuring and ongoing operations
Shenoy said the plan “will facilitate a seamless transition to a sustainable business with a strengthened balance sheet, access to capital, and ability to operate profitably in the near term.”
