WESTBOROUGH, Mass.-Arch Communications Group Inc. announced it must provide a
supplemental disclosure statement to MobileMedia Corp.’s Class 6 general unsecured creditors, and then resolicit
confirmation votes from them for the proposed merger of the two companies, by order of the U.S. Bankruptcy Court for
the District of Delaware.
Apparently, the official committee of unsecured creditors and those creditors acting as
standby purchasers received information regarding projections and the potential market value of the combined
companies, while other creditors in the class did not. Also, Arch is required to reveal that two of the standby purchasers
are both members of MobileMedia’s official committee of unsecured creditors as well as Arch stockholders, a claim
made by a group of MobileMedia bondholders in the class who oppose the merger.
The judge ruled that to be fair,
all members of the class must have the same information available to them before voting on the reorganization plan, as
a rights offering for stock is involved.
The process is expected to be completed by Thursday’s scheduled court
date.
“We do not expect this to cause a significant delay in approving the plan or approving our
merger,” said Krista Grossman, MobileMedia spokeswoman.
Meanwhile, New Generation Advisers Inc.,
representing the bloc of bondholders opposing the merger, said it will take advantage of the adjournment to pursue an
alternative reorganization plan.
