Acterna exits Chapter 11, introduces new Board of Directors
16 October 2003 Germantown, MD Lightwave -- Only five months after initiating its case, test equipment vendor Acterna has emerged from chapter 11 protection. As previously announced, Acterna's Plan of Reorganization received overwhelming support from all classes of creditors and was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on September 25.
16 October 2003 Germantown, MD Lightwave -- Only five months after initiating its case, test equipment vendor Acterna has emerged from chapter 11 protection. As previously announced, Acterna's Plan of Reorganization received overwhelming support from all classes of creditors and was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on September 25. Acterna subsidiary, da Vinci, manufacturer of color image enhancement and automatic film and video restoration technology, has also emerged from chapter 11 protection.
"Acterna has continued to serve its customers and deliver new innovations throughout the debt restructuring process," asserts John Peeler, president and chief executive officer. "We emerge today with a bright future and as a stronger company more committed than ever to the employees, customers, suppliers, and other business partners that have been so instrumental to our continued success."
Acterna's strategic focus is to deliver communications test solutions that help its customers deploy new communications services, reduce operating expenses, and improve quality. Its customers include communications service providers--such as Alltel, AT&T, Bell South, BT, Comcast, Deutsche Telekom, France Telecom, TelefÃ³nica, SBC, Time Warner Cable and Verizon--as well as equipment manufacturers, including Alcatel, Cisco, Lucent, Nortel, and others. During the last five months, Acterna has introduced more than 10 new products and enhancements. The company says it will launch 12 more new products and major enhancements before the end of the year.
"Acterna has a long, proven track record as one of the leading providers of communications test solutions for optical, access, and cable networks," contends Dana Cooperson, group and program director for RHK Inc., a global telecom research and advisory services firm. "The company's health has improved through their recent reorganization, and they are aligning their business to meet the growing need among communications service providers to launch new services and lower network expenses through improvements in business processes."
Acterna also announced a new, five-member Board of Directors, effective today. The new Board is made up of the following members:
• Todd Arden, director, Angelo, Gordon & Co.
• Alain Couder, president and CEO of Confluent Software.
• James Gaffney, director for several companies, including Hexcel Inc., Imperial Sugar Company (chairman), SCP Pool Inc.
• Edward Horowitz, founder and chairman of EdsLink LLC
• John Peeler, president and CEO, Acterna.
Per Acterna's Plan of Reorganization, which becomes effective today, Acterna's senior secured debt holders receive 100% of the company's equity through a debt-for-equity swap. Acterna emerges as a privately held company with long-term debt of approximately $190 million and quarterly cash interest expense of less than $2 million. Holders of Acterna's current convertible and subordinated notes will receive warrants having diminimus value. Unsecured creditors receive a cash distribution of approximately 10% of their claims. Current equity holders will receive no distribution under the terms of the plan.