Te U.S. Bankruptcy Court for the District of Delaware confirmed Birch Telecom's Chapter 11 plan of reorganization. Birch will issue 100% of its post-emergence equity to its secured lenders. In addition, Birch's pre-petition secured debt of $108 million will be reduced to $35 million in reinstated debt held by the secured lenders. Birch's current equity will be canceled and equity holders will receive no distribution under the plan. Other creditors will receive distributions as provided under the plan.
Birch also announced today that upon the company's emergence from Chapter 11, Stephen Dube will take over as CEO and President, replacing Greg Lawhon who has decided to leave the Company to pursue another opportunity.
http://www.birch.com
- Birch Telecom serves 130,000 customers in more than 50 metropolitan markets across 12 states.
