The U.S. Bankruptcy Court for the Southern District of New York confirmed a plan of reorganization agreed to by RCN and its creditors, enabling the company to emerge from Chapter 11 by the end of the year. Under the plan, a total of $1.19 billion in debt will be converted into new equity of RCN. New credit facilities will be established by year end, led by Deutsche Bank, of up to $480 million under favorable terms to be used to pay off the previous senior secured lenders led by JP Morgan Chase. Upon emergence from Chapter 11, RCN will also have over $100 million in unrestricted cash to support its strategy.
Peter D. Aquino has been selected as RCN’s new CEO. Aquino has been Senior Managing Director of Capital & Technology Advisors LLC (CTA), a telecommunications advisory firm, since 2001. A new Board of Directors has also been named. http://www.rcntomorrow.com/
