July 20, 2012
FiberTower to Eliminate Long-Term Debt through Proposed Plan of Reorganization
By Sujata Garud
FiberTower (News - Alert) Corporation and some of its wholly-owned subsidiaries have filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code. The filing includes a projected plan of reorganization for FiberTower Corporation. The company will get rid of its long-term debt through this proposed plan of reorganization and will allow FiberTower Corporation to come out from bankruptcy as a stronger business.
FiberTower Network Services Corp., FiberTower Licensing Corp. and FiberTower Spectrum (News - Alert) Holdings, LLC are the FiberTower Corporation subsidiaries which have filed the above mentioned voluntary petitions. According to the proposed plan, FiberTower will be reorganized around its restructured legacy backhaul network in addition to two other business lines - - spectrum services and carrier services.
Before deciding on the restructuring plan, FiberTower evaluated diverse strategic and financial alternatives and decided that reorganizing under Chapter 11 is in the best long-term interests of the company, its customers, employees, creditors, business partners and other stakeholders. The presented plan of reorganization is supported by an ad hoc group of holders of the company's secured debt pursuant to a plan support agreement.
FiberTower is eyeing to run “business as usual” during the Chapter 11 process. During the Chapter 11 process, the company will operate its backhaul network; pay "post-petition" vendors, suppliers and other business partners for goods and services provided; and pay employees' wages and salaries and maintain current medical, dental, life insurance, disability and other benefits.
FiberTower has signed a consensual agreement with the ad hoc group to use cash collateral. At the same time, FiberTower filed a range of "first day motions" to support its employees, customers, vendors and other stakeholders; to maintain existing cash management programs; to retain legal and other professionals; and to support the Company's reorganization case.
FiberTower was recently in news when MicroStockProfit.com, the premier destination for investment information, announced a stock report featuring FiberTower Corp. The report details the company's most recent developments and news, charts its financial position and market performance, and includes an easy-to-read stock chart.
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Edited by Rachel Ramsey
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