Modular Space Holdings, Inc., along with six (6) of its affiliates and subsidiaries, filed petitions for relief under Chapter 11 in the Bankruptcy Court for the District of Delaware earlier this morning.  According to the First Day Declaration, ModSpace is the largest U.S.-owned provider of temporary and permanent modular buildings and enters bankruptcy with a Restructuring Support Agreement, Debtor-in-Possession Financing and prepackaged Plan of Reorganization.  Under the proposed Plan, the Debtors’ first lien ABL Lenders, who are providing the proposed DIP Financing, will have their pre-petition credit agreement amended and assumed as an Exit Credit Facility.  ModSpace’s Second Lien Noteholders will receive their pro rata share of approximately one third of the equity in the Reorganized Entity and the right to participate in a rights offering of $90 million (approximately 60% of the equity in the Reorganized Entity).  Existing equity holders will receive their pro rata share of slightly less than 5% of the equity and two tranches of warrants.  The Disclosure Statement for the proposed Plan can be found hereKurtzman Carson Consultants, LLC is the proposed claims agent.  The cases have been assigned to the Honorable Kevin J. Carey.

Contact Norman L. Pernick and  Nicholas J. Brannick for more information.