Rural telecommunications provider Ntelos Inc. said it had completed its financial restructuring and emerged from Chapter 11 bankruptcy proceedings following the confirmation of its Joint Plan of Reorganization by the U.S. Bankruptcy Court for the Eastern District of Virginia.
Ntelos said the restructuring cut its debt load from nearly $950 million when it filed for bankruptcy protection in early March to approximately $320 million.
Under the reorganization plan, Ntelos will become a privately held company with former senior noteholders owning approximately 94 percent of Ntelos’ new common stock. The remaining stock will be issued to former subordinated noteholders, purchasers of the company’s new convertible notes and in settlement of other claims and equity interests. Existing shares of Ntelos’ common stock, which recently traded under the NTLOQ.OB ticker symbol, have been cancelled along with the company’s senior and subordinated notes and outstanding preferred stock.
Ntelos’ management said the company emerged from its restructuring with approximately $320 million in debt, a new $261 million credit facility consisting of $228.6 million in outstanding term loans and a $32.4 million revolving facility. In addition, the company received $75 million from the sale of 9-percent convertible notes to certain former senior noteholders.
Following scheduled payments to creditors and professional fees, Ntelos said it expects to have approximately $50 million of cash on hand, which when combined with its revolving credit facility and cash generated from ongoing operations, will provide increased liquidity for growing its business.
