My Alarm Center to restructure under Chapter 11 protection

NEWTOWN SQUARE, Pa.—Home security provider, My Alarm Center, filed for Chapter 11 protection this week, with 100 percent of its senior lenders and other key stakeholders agreeing to support the company’s prepackaged plan of reorganization that provides for elimination of approximately $235 million of legacy debt obligations, the company told Security Systems News.

My Alarm Center said it will continue to operate in the “ordinary course of business” during the restructuring process, and has received commitments from its senior lenders for $15 million of fresh capital to “continue providing exceptional, uninterrupted service to its customers during the period of the financial restructuring while also meeting its financial obligations to vendors and employees. This transaction will provide a capital structure to ensure the company’s long‐term viability and set the foundation for My Alarm Center’s next phase of growth.”

My Alarm Center’s Chief Executive Officer Amy Kothari noted, “The residential security industry faced numerous challenges over the last year, including multiple long‐time industry lenders deciding to exit the space. This shift in the debt market was further exacerbated by the unprecedented COVID‐19 pandemic resulting in significant pressure on cash flow and liquidity.”

She continued, “As a result, we took decisive action to address these challenges and deleverage our balance sheet to position us for future growth and sustainable success. We are grateful for the support from our lenders and advisors throughout this process and especially thankful for the incredible patience, hard work and dedication of our employees. We are highly confident that the work we have done and the path we have chosen will result in a much stronger capital structure and bright future for our company, our partners, and our employees, allowing us to continue to provide superior support and service to our customers.”

The reorganization plan put forth by My Alarm Center, which remains subject to approval by the Bankruptcy Court and final consummation, will enable the company to quickly and efficiently recapitalize its balance sheet with no material impact on the majority of its creditors, the company said, noting, “the long‐standing vendor and partner relationships essential to the company’s success will remain unimpaired during the restructuring.”

My Alarm Center is represented in this matter by Skadden, Arps, Slate, Meagher & Flom, LLP, Chipman Brown Cicero & Cole, LLP, M3 Partners, LLC, and Raymond James. Parties with questions about the Chapter 11 process may contact the company by emailing questions@myalarmcenter.com or visit myalarmcenter.com/c11faq for more information.