360networks Corp. announces successful emergence from restructring
November 13, 2002--360networks Corp. has successfully emerged from Chapter 11 protection in the US and CCAA protection in Canada.
360networks Corp. has successfully emerged from Chapter 11 protection in the US and CCAA protection in Canada.
During its restructuring, 360networks completed the lighting of its US and Canadian footprint, successfully grew its monthly recurring revenue from lit services, including wavelengths and private lines, and dramatically reduced its monthly recurring expenses, say company representatives. 360networks will emerge with more than $100 million of cash and $215 million of bank debt (reduced from the company's pre-filing debt level of approximately $2.7 billion). Given its strong liquidity position, the Company's business plan does not anticipate requiring additional capital prior to its debt maturing in five years.
"We are excited to move past the restructuring phase and focus on delivering our advanced service offerings to our customers," contends Greg Maffei, 360networks' chief executive officer. "We are well funded, optimistic about our position, and are anxious to take part in the on-going reshaping of the telecommunications industry."
With emergence, Greg Maffei will become chairman and chief executive officer and Jimmy Byrd will become president. The Company's new board of directors will consist of:
• S. Dennis Belcher--former executive vice president, credit and risk management of The Bank of Nova Scotia
• William T. Brock--former deputy chairman of TD Bank Financial Group
• Michael W. Brown--former chief financial of Microsoft Corp. and former chairman of the Nasdaq Stock Market
• George T. Haymaker, Jr.--non-executive chairman of Kaiser Aluminum and Safelite Glass
• Gregory B. Maffei--chairman and chief executive officer, 360networks Corp.
• Wilbur L. Ross, Jr.--founder and chairman of WL Ross & Co.
• David R. Van Valkenburg--chairman of Balfour Associates and former executive vice president, MediaOne and chief executive officer of Telewest
360networks previously announced that WL Ross & Co. LLC, a leading private equity firm, had purchased debt securities of 360networks that represent approximately 10% of the new equity and 13% of the new bank debt, and that 360networks and WL Ross & Co. are partnering to consider acquisitions in the telecommunications industry.
The Company's equity will be held by 360networks' pre-filing secured lenders and unsecured trade creditors and by the Company's employees. 360networks expects to list its common stock on the Nasdaq and the TSE upon the completion of a registration statement in early 2003.