Focal Files Amended Chapter 11 Reorganization Plan

Focal Communications, a CLEC serving 23 top U.S. markets, filed an amended reorganization plan with the bankruptcy court. As previously announced, Focal already has agreements in place to exchange approximately $110 million of its senior secured convertible notes into preferred equity, and has prepaid $15 million under its senior secured bank credit facility as part of its pre-negotiated Chapter 11 filing. The amended filing reflects an agreement in principal on the basic economic terms between the senior secured convertible noteholders and the Official Committee of Unsecured Creditors. The plan, if confirmed, will eliminate approximately $375 million of debt. Moving forward, Focal intends to maintain its presence in all of its 23 markets and to continue to offer all of its current voice and data services, with the exception of its DSL service.
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