June 30, 2008 17:52 ET

PRC Completes Financial Restructuring and Emerges From Chapter 11

PLANTATION, FL--(Marketwire - June 30, 2008) -

--  PRC emerges with positive cash flow, strengthened balance sheet and
    new funding
--  PRC now owned by pre-Chapter 11 secured lenders through private
    holding company
--  Client and employee support contributed to successful reorganization

PRC, LLC, a leading provider of outsourced customer management services, announced today that PRC and its affiliated debtors have completed their financial restructuring and successfully emerged from Chapter 11.

Upon consummation of the Plan and PRC's emergence from Chapter 11, a significant part of PRC's debt was converted into equity and PRC's prepetition senior and second lien secured lenders became PRC's equity holders through a private holding company. The largest equity holders are investment firms that are affiliates of Babson Capital Management, LLC, Bayside Capital and Silver Point Capital. This group is also providing post-emergence credit facilities for PRC's future operating and capital funding requirements.

Jerry McElhatton, PRC's CEO, expressed appreciation for the support of PRC's clients through the reorganization period. "Our clients demonstrated their belief in PRC and in the quality of our services. I want to thank them on behalf of PRC's Board and management team," he said. Mr. McElhatton added, "We are emerging as a revitalized company, cash flow positive, with a seasoned management team, a strengthened balance sheet and the financial resources and operational structure necessary to compete effectively in today's dynamic marketplace." Mr. McElhatton noted that, during the course of the reorganization, several major clients showed their confidence in PRC by agreeing to renew their service agreements with PRC for customer care, sales and marketing programs.

He also recognized the hard work and dedication of PRC's employees and management. "Our team has remained highly focused on providing excellent service to our clients and their customers. The combination of client support and employee dedication allowed the restructuring process to remain seamless to our operation through the comparatively short Chapter 11 process." He noted that PRC and its debtor affiliates emerged from Chapter 11 in a little over five months after filing their Chapter 11 petitions on January 23, 2008.

About PRC:

PRC is an outsourced Business Solutions Provider globally delivering Customer Management and Sales & Marketing services on behalf of leading brands. With over 25 years of experience, PRC delivers solutions that support communications to target, acquire, grow, retain and develop customer relationships that deliver a positive return on their clients' investment. Headquartered in Ft. Lauderdale, Florida, the Company supports clients worldwide through its global network of centers. For more information, visit

Contact Information

  • PRC Media Contacts:
    Alicia Miyares

    Michael Freitag
    Wendi Kopsick
    Kekst and Company Incorporated