Catalina Files for Bankruptcy as Marketing Dollars Tighten (2)

Catalina Marketing, the unit of Checkout Holding Corp. historically known for doling out cash-register coupons, filed for bankruptcy to clean up its debt-plagued balance sheet.

The company, which filed for Chapter 11 protection in Delaware, said it has an agreement with over 90 percent of its most senior lenders that would cut its debt by about $1.6 billion. The court-supervised restructuring will allow the business to continue operating while aiming to trim the company’s debt load to around $280 million of secured debt upon emergence, from $1.9 billion, according to court filings.

Catalina, owned by private equity firms Berkshire Partners ...