Monday, June 20, 2011

Hawaiian Telcom files reorganization plan - Pacific Business News (Honolulu):

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The company, which filed for Chapter 11 bankruptcin December, said the steering committee representing thosw who hold claims under the company’es secured credit agreement supports the plan. “The filingf of the plan and disclosurs statement is an importantr achievement in ourrestructuring efforts,” said Eric K. Hawaiian Telcom’s president and CEO, in a statement. “The plan provideas for a significantly deleverage dcapital structure, and the terms of the new debt give us greatert financial flexibility to execute our business plan and invest in new products, better positioning the company for future success.
” A hearing to considere approval of the disclosure statement has been tentatively schedule for July 23. The plan includes the conversionn ofapproximately $590 millio n of the company’s senior secured credit facility and swap liabilities into the new equity of the reorganizedr company and a new $300 million senior secured term loan maturing in five years. Holderds of $350 million in senior note s will get warrants tobuy 12.75 percent of the reorganizef company’s new equity and subscription rights to buy new equit y up to $50 million.
The company said it expects to emergw from Chapter 11with $30 millionn undrawn revolving credit facility and at leastt $45 million of cash on Hawaiian Telcom is owned by , a D.C.-based private equity group. Carlylwe bought the assets of in May 2005for $1.6 and began operating independently with its own systemz in April 2006. The plan and diclosure statemen tare .

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