Secure Home Holdings Announces Decisive Action, with Lender Support, to Strengthen its Balance Sheet for Future Growth and Sustainable Success

NEWTOWN SQUARE, Pa., April 26, 2021 /PRNewswire/ -- Secure Home Holdings, a leading provider in home security, announced today that 100% of its senior lenders and other key stakeholders have agreed to support the Company's prepackaged plan of reorganization (the "Plan") under Chapter 11 of the U.S. Bankruptcy Code. The Plan provides for elimination of approximately $235 million of legacy debt obligations, strengthening of Secure Home Holdings's financial structure, and support for the Company's long-term growth plans. This decisive action will allow the Company to focus on core competencies, including providing superior service to its customers, without the burden of servicing significant debt levels. All operations will continue as usual without interruption and the Chapter 11 process is expected to conclude within approximately 60 days.

Secure Home Holdings will continue to operate in the ordinary course of business during the restructuring process. The Company 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 suppliers and other vendors and employees. This transaction will provide a capital structure to ensure the Company's long-term viability and set the foundation for Secure Home Holdings's next phase of growth.

"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," said Amy Kothari, Secure Home Holdings's Chief Executive Officer. "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."

With the significant support of its lenders and other key stakeholders, implementation of the Plan, 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. Upon the effective date, the remaining debt will be converted to equity and a new capital structure will be put in place to support the needs of the Company going forward.

The Company is seeking customary approvals from the court overseeing its Chapter 11 case. Operations will continue as usual through the court-supervised process, including the continued dedication to meeting and exceeding customer expectations and needs.  The long-standing supplier, vendor and partner relationships essential to the Company's success will remain unimpaired during the restructuring.

Secure Home Holdings is represented in this matter by Skadden, Arps, Slate, Meagher & Flom, LLP, Chipman Brown Cicero & Cole, LLP, M3 Partners, LLC, and Raymond James.

About Secure Home Holdings

Secure Home Holdings is a leading provider of security and smart home automation to residential and small business customers throughout the United States. With a primary focus on providing best-in-class security and alarm monitoring, Secure Home Holdings offers a range of services to help protect customers. In addition to intrusion, fire and carbon monoxide protection, Secure Home Holdings delivers smart home integration, expanding security services to a total lifestyle solution?and keeping customers connected to home and family from anywhere.

SOURCE Secure Home Holdings