Bankruptcy News

We've summarized the latest docket activity and news for publicly traded companies currently operating under U.S. Bankruptcy Court protection.

Bankruptcy/Chapter 11 / Bonds

Sorenson Communications Plan Effective

Sorenson Communication’s Joint Prepackaged Chapter 11 Plan of Reorganization became effective, and the Company emerged from Chapter 11 protection. The Court confirmed the Plan on April 10, 2014. According to a press release, “Reorganized Sorenson, with a strengthened balance sheet, will continue investing in its service platform and developing products to provide innovative communications technology to the deaf and hard-of-hearing community. In addition, reorganized Sorenson now has the financial runway needed to work with the FCC on addressing the future regulatory framework for the industry.” As previously reported, “The Plan provides, among other things, that the Debtors will: (a) enter into the Exit Facility, consisting of a $550 million first lien term loan, which will be backstopped by certain holders of Secured Notes or their affiliates and, potentially, a $25 million first lien revolving credit facility; (b) repay in full the existing First Lien Credit Facility; (c) exchange existing Secured Notes for a combination of two series of new notes, new equity, and cash; and (d) exchange existing equity for a combination of new notes and new equity. The current holders of Secured Notes will own 87% of the reorganized ultimate parent company.” This telecommunications services provider filed for Chapter 11 protection on March 3, 2014, listing $645 million in pre-petition assets.

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