Choice One Communications announced Wednesday that it has filed for a “prepackaged” chapter 11 financial reorganization.
The Integrated Communications Provider, which offers facilities-based voice and data telecommunications services, including Internet solutions, to clients in 29 Northeast and Midwest markets, filed Chapter 11 to restructure and substantially reduce the Company’s debt, strengthen its balance sheet, and increase its liquidity. The plan was filed last Tuesday night in U.S. Bankruptcy Court for the Southern District of New York.
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Choice One said it has received a commitment for $20 million of debtor-in-possession (DIP) financing from certain of its existing lenders, for whom General Electric Capital Corporation, through its GE Commercial Finance unit, is acting as agent.
The new credit facility, along with the Company’s cash on hand and cash flow from operations, will enhance the Company’s ability to meet obligations to clients, vendors and colleagues throughout the financial restructuring process, and to remain a premier provider of telecommunications services, the company announced.
Restructuring was accepted prior to the filing by almost 100% of the Company’s lenders.
It is expected that Choice One will complete its restructuring quickly, with the Company’s exit from chapter 11 expected to occur in less than 60 days.
The Company expects to continue normal operations throughout the restructuring process. All services provided to clients are expected to continue on a “business as usual” basis.
Headquartered in Rochester, New York, Providence is one of Choice One Communications markets.
