Oct, 2002 : ITC-DeltaCom Reorganization Plan Approved
📅 - Integrated telecommunications and technology provider ITC-DeltaCom Inc. (itcdeltacom.com) announced on Thursday that its voting creditors and stockholders have overwhelmingly approved the company's proposed plan of reorganization.
According to the company, the final tally of votes received by the October 2 deadline saw the plan approved by approximately 99.8 percent of senior notes and 100 percent of convertible notes that voted. The plan was also approved by 100 percent of the shares of preferred stock, and approximately 98.3 percent of the shares of common stock that voted on the plan. ITC-DeltaCom says it will file the final voting report next week with the United States Bankruptcy Court for the District of Delaware.
The terms of the reorganization plan, previously released by the company, would see all of its $415 million principal amount of senior note debt eliminated and 81.5 percent of the reorganized Company's common stock given to its senior noteholders. All the company's $100 million principal amount of subordinated convertible note debt would be eliminated and convertible noteholders would receive 5 percent of common stock. Existing holders of common stock Series A preferred stock and Series B preferred stock will collectively receive 1 percent of the reorganized company's common stock. A group of investors has agreed to purchase $30 million of a new issue of the reorganized company's convertible preferred stock.
The company says it expects, assuming the repayment of certain capital lease obligations, to reduce its total indebtedness from approximately $724 million on March 31, 2002 to approximately $194 million under its senior credit facility and capital leases. ITC-DeltaCom estimates that, as a result, its 2002 annual interest expense on a pro forma basis will decrease from approximately $55 million to about $13 million.
According to the company, the final tally of votes received by the October 2 deadline saw the plan approved by approximately 99.8 percent of senior notes and 100 percent of convertible notes that voted. The plan was also approved by 100 percent of the shares of preferred stock, and approximately 98.3 percent of the shares of common stock that voted on the plan. ITC-DeltaCom says it will file the final voting report next week with the United States Bankruptcy Court for the District of Delaware.
The terms of the reorganization plan, previously released by the company, would see all of its $415 million principal amount of senior note debt eliminated and 81.5 percent of the reorganized Company's common stock given to its senior noteholders. All the company's $100 million principal amount of subordinated convertible note debt would be eliminated and convertible noteholders would receive 5 percent of common stock. Existing holders of common stock Series A preferred stock and Series B preferred stock will collectively receive 1 percent of the reorganized company's common stock. A group of investors has agreed to purchase $30 million of a new issue of the reorganized company's convertible preferred stock.
The company says it expects, assuming the repayment of certain capital lease obligations, to reduce its total indebtedness from approximately $724 million on March 31, 2002 to approximately $194 million under its senior credit facility and capital leases. ITC-DeltaCom estimates that, as a result, its 2002 annual interest expense on a pro forma basis will decrease from approximately $55 million to about $13 million.
Reads: 2016 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/itc100402.cfm
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