Apr 26, 2002 : Globix Emerges from Chapter 11
📅 - Internet hosting, network and applications solutions provider Globix Corporation (globix.com) announced on Friday that it has emerged from Chapter 11 bankruptcy protection after the United States Bankruptcy Court confirmed its plan of reorganization, and all conditions necessary were met or waived.
Along with emerging from bankruptcy, the company announced that it maintained full availability of its service during the period of reorganization.
According to the company, benefiting from a sound balance sheet and substantial cash position, Globix believes it has strengthened the platform from which it will promote its capabilities as a service provider using its Internet data centers, global backbone and content delivery network and its staff of technical professionals.
"Our mission remains the same:? says chief executive officer Peter Herzig, ?to focus on the high level of availability and service delivery that has been the foundation of our business. We believe that there is a strong opportunity for increased revenue growth in the US and UK Web hosting marketplaces. Our existing customers continue to remain confident in our commitment to quality of service and a competitive product offering."
Through the financial restructuring, says Globix, the company's bondholders exchanged the current $600,000,000 indebtedness for $120,000,000 in senior secured notes, due in 2008, with 11 percent interest payable in kind for up to four years. This will relieve the company of approximately $75 millon in annual cash interest expense on the existing notes. There will be no interest payable on the new senior secured notes for up to four years.
The reorganized company's new board of directors will meet for the first time on Monday, April 29.
Along with emerging from bankruptcy, the company announced that it maintained full availability of its service during the period of reorganization.
According to the company, benefiting from a sound balance sheet and substantial cash position, Globix believes it has strengthened the platform from which it will promote its capabilities as a service provider using its Internet data centers, global backbone and content delivery network and its staff of technical professionals.
"Our mission remains the same:? says chief executive officer Peter Herzig, ?to focus on the high level of availability and service delivery that has been the foundation of our business. We believe that there is a strong opportunity for increased revenue growth in the US and UK Web hosting marketplaces. Our existing customers continue to remain confident in our commitment to quality of service and a competitive product offering."
Through the financial restructuring, says Globix, the company's bondholders exchanged the current $600,000,000 indebtedness for $120,000,000 in senior secured notes, due in 2008, with 11 percent interest payable in kind for up to four years. This will relieve the company of approximately $75 millon in annual cash interest expense on the existing notes. There will be no interest payable on the new senior secured notes for up to four years.
The reorganized company's new board of directors will meet for the first time on Monday, April 29.
Reads: 1426 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/glo042602.cfm
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