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Covad Submits Chapter 11 Reorganization Petition to Eliminate $1.4 Billion Debt; DSL Network and Customers Remain Unaffected Updated: Wednesday, August 15, 2001 09:40 PM ET Email this article to a friend! Printer-friendly version SANTA CLARA, Calif.--(BUSINESS WIRE)--Aug. 15, 2001--Covad Communications Group, Inc. (OTCBB: COVD), the parent company of Covad Communications Company, today announced that it has filed for reorganization under Chapter 11 of the Federal bankruptcy code in the U.S. Bankruptcy Court for the District of Delaware, as part of a voluntary, pre-negotiated plan to eliminate Covad`s $1.4 billion in debt. It is expected that Covad`s DSL network and its customers will remain unaffected throughout the filing period. Holders of a majority of Covad`s bonds have agreed in writing to the terms of a debt repurchase that, if approved by the court, would eliminate Covad`s bond debt. This filing is intended, through court approval, to bind 100 percent of Covad`s bondholders to the transaction. Covad`s intention to implement this transaction through reorganization under Chapter 11 was announced on August 7, 2001 and the company expects this process to be complete and emerge by January 2002. Covad`s operating subsidiaries, which provide DSL services to customers, are not expected to be included in the court-supervised proceeding and will continue to operate in the ordinary course of business without any court imposed restrictions. Covad`s operating subsidiaries plan to continue their current operations and business plan while supporting their 1,700 employees, over 330,000 end users, sales support, Covad`s national network, the installation process and vendors outside of the court-supervised proceeding. "This filing is a tool to eliminate Covad`s debt and significantly improve our ability to raise the additional capital we need to get to profitability," said Charles E. Hoffman, Covad`s CEO. "Most importantly, this action does not affect our operations, customers, network or employees. It is business as usual for our broadband customers." Shares of Covad Communications are expected to begin trading under the symbol COVDQ as a result of this filing. |
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| aus der Diskussion: | Covad - Himmel oder Hölle |
| Autor (Datum des Eintrages): | Mamboking (16.08.01 12:26:24) |
| Beitrag: | 29 von 149 (ID:4213579) |
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