Mar 4, 2002 : Globix Proceeds with Bankruptcy


📅 - Troubled Web hosting company Globix Corp. (globix.com) said today it is filing for Chapter 11 bankruptcy protection, proceeding with a previously settled plan to reduce debt to later emerge from bankruptcy.

The company said it would exchange its outstanding $600 million in seniornotes for $120 million in new senior notes, and 85 percent of thereorganized firm's stock.
Current holders of Globix's common stock will receive about 1 percent of thenew common shares, while holders of the company's preferred stock wouldreceive about 14 percent of the new common stock.
Globix also announced that it is negotiating with the landlord of itsheadquarters, the "Globix House" operations in London and a measure of thecompany's rent payment may be forfeited as part of a new pact. The companyexpects to cut additional costs by giving up some of its office space.

Reads: 2221 | Category: General | Source: TheWHIR : Web Host Industry Reviews
URL source: http://www.thewhir.com/marketwatch/glo030402.cfm
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