FLAG files restructuring plan
3 July 2002 -- After filing for voluntary Chapter 11 bankruptcy protection in April, Bermuda-based network operator FLAG Telecom Holdings Ltd has filed a Plan of Reorganization in the US Bankruptcy Court for the Southern District of New York that would pave the way for it to emerge from Chapter 11 with its global fibre network intact by September, with a major reduction of its financial indebtedness and operating expenses.
Creditors would get about 25% of the common stock of the reorganised company and shareholders would receive either stock or a combination of stock, cash and promissory notes. FLAG's creditors back the plan.