Trade show organizer Key3Media Group filed for Chapter 11 bankruptcy protection in Delaware’s U.S. Bankruptcy Court and proposed a recapitalization plan backed by Thomas Weisel Capital Partners designed to keep the company in business.

Thomas Weisel Capital Partners owns approximately 68 percent of Key3Media’s bank debt and approximately 38 percent of its bonds.

Through the recapitalization plan, Key3Media hopes to reduce its total debt by 87 percent — from nearly $372 million to $50 million — and eliminate all of its existing preferred stock and common equity. The company said its annual interest expense will be cut from $32 million to $3.4 million.

Thomas Weisel Capital Partners, the merchant banking affiliate of investment firm Thomas Weisel Partners LLC, has agreed to provide Key3Media $30 million in debtor-in-possession financing in a pre-negotiated Chapter 11 proceeding.

üWCP has also agreed to fund the company to move forward with is reorganization plan, which according to Key3Media, will allow the company to operate its business without interruption. Key3Media’s current management will remain in place during this time.

Key3Media said it plans to emerge from Chapter 11 within 90 days. Meanwhile all scheduled trade shows will go on as planned, including Comdex, scheduled for November and Seybold, scheduled for September.

“This comprehensive plan is designed to put Key3Media back on track to long-term financial health while giving us the capital strength and operating flexibility we need to hold all of our scheduled trade shows and conferences,” said Fredric D. Rosen, Key3Media’s chairman and chief executive officer. “After a thorough review of our strategic options, we believe this is by far the best alternative for all of our constituencies.”

Lawrence B. Sorrel, managing partner of Thomas Weisel Capital Partners said, “With a strong portfolio of brands, a large high-caliber client base and a leading market position, Key3Media is a fundamentally sound company that has been hurt by its capital structure and the declines in the IT and networking industries.”