Cinram International, Inc.


Cinram International, Inc. is one of the world’s largest providers of pre-recorded multimedia products and related logistics services for major motion picture studios. 90% of Cinram’s revenues are derived from the replication and distribution of pre-recorded optical discs (DVD, Blu-Ray, CD).

On February 1, 2010, Cinram announced that Warner Home Video, its largest customer representing approximately 30% of their FY 2009 revenue, would not be renewing its contract effective July 31, 2010. Several other major studio customers and music labels representing over 40% of Cinram’s remaining business were due for renewal in the near term and were questioning the continued financial viability of the Company.

Continued shifts in consumer behavior to alternative business models and forms of distribution were also significantly impacting the global DVD replication market Cinram’s existing loan agreement related to nearly $500 million of loan commitments was due to expire in May 2011.

The Project

Zolfo Cooper was hired as financial advisor to the lender steering committee to review Cinram’s operational restructuring and strategic plans and develop an independent market and business forecast.

Over a 15-month period, ZC advised the steering committee through extensive direct negotiations with Cinram and a major motion picture studio customer for which the extension of their contract and the restructuring became interdependent.


Negotiations produced an amendment and restructuring plan supported unanimously by the stakeholders (steering committee, management, equity holders, major motion picture studio) that included substantial terms improvement for lenders, an initial equity stake, a partial de-levering into majority ownership if outside capital is not raised, and a stable and viable path to maximize loan recoveries.

Agreements for multi-year contract extensions with the major motion picture studio and music label were reached which exceeded the initial term proposed and includes incremental revenues for Cinram.

The initial restructuring and recapitalization transaction launched in January 2011 and closed with 100% lender approval, as did a subsequent amendment which closed in August 2011.