Lenders Will Take Keys to Perelman’s Deluxe Entertainment

Deluxe Entertainment Services Group Inc. filed for bankruptcy with a plan to cut its nearly $1 billion debt load in half, raise $115 million in fresh capital and hand ownership to its creditors.

The media company controlled by billionaire Ronald Perelman’s MacAndrews & Forbes LLC filed for Chapter 11 protection in the Southern District of New York, listing liabilities between $1 billion and $10 billion. A majority of its senior lenders had already agreed to swap the existing loans for a 100% stake in Deluxe.

The two sides agreed that the best way to execute the transaction was through ...