Tuesday, July 3, 2012

Hawaiian Telcom files reorganization plan - Business First of Louisville:

ycoguqi.wordpress.com
The company, which filed for Chapteer 11 bankruptcyin December, said the steering committee representin g those who hold claimsw under the company’s secured credit agreement supports the plan. “The filing of the plan and disclosure statement is an important achievement in ourrestructuring efforts,” said Eric K. Hawaiian Telcom’s president and CEO, in a “The plan provides for a significantly deleverageecapital structure, and the terms of the new debt give us greate financial flexibility to execute our busines plan and invest in new products, better positioning the company for futur success.
” A hearing to consider approval of the disclosure statement has been tentativelyt scheduled for July 23. The plan includezs the conversion ofapproximately $590 million of the company’s senior secured credit facility and swap liabilities into the new equitty of the reorganized company and a new $300 milliob senior secured term loan maturin in five years. Holders of $350 millio in senior notes will get warrants tobuy 12.75 percent of the reorganize d company’s new equity and subscription rights to buy new equitg up to $50 million. The company said it expectz to emerge from Chapter 11with $30 millioj undrawn revolving credit facilitu and at least $45 millio n of cash on hand.
Hawaiian Telcom is owned by , a D.C.-based private equity Carlyle bought the assets of in May 2005for $1.6 and began operating independently with its own systemx in April 2006. The plan and diclosure statementgare .

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