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Spark Networks has received approval on its restructuring plan, which will lead to MGG Investment Group becoming the dating company’s sole equity owner.
Reports from Wirtschafts Woche highlight that MGG Investment Group will become the sole equity owner of Spark Networks for €164,000, which includes taking on the company’s debts.
After its restructuring plans were approved by courts in Germany, Spark Networks can move ahead with its next steps.
As part of these plans, $45 million of debt will be eliminated, with improved terms on the remainder of the loan facility with MGG group. The investment group will also make $24 million available for operations and strategic plans.
This financial support will together go towards Spark Networks’ transformation plans, which include outsourcing parts of the marketing, engineering, maintenance, and customer service teams, as well as a reduction in the number of employees.
“This milestone marks an important step as we prepare to begin a new era for Spark Networks”, shared Colleen Brown, Chair of Spark’s Board of Directors and Interim Chief Executive Officer.
“The German Court’s approval of our plan as part of a landmark StaRUG case will enable us to continue in our mission to help people around the world find meaningful relationships and spark connections that matter, on more sustainable footing”, she added.
Spark Networks operates a number of online dating platforms including Zoosk, EliteSingles, SilverSingles, Christian Mingle, Jdate, and JSwipe, among others.
“With our enhanced capital structure and MGG’s support, we look forward to continuing our transformation as we move into the future as a financially stronger company,” said Kristie Goodgion, Spark Networks’ Chief Financial Officer.
Read Spark Networks’ full statement on this development here.
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