FORT LEE, N.J.-MobileMedia Communications Inc. on Friday filed a statement with the U.S. Bankruptcy Court for the District of Delaware supporting the acquisition bid submitted by Arch Communications Group Inc. over a competing bid from TSR Wireless L.L.C.
This information updates a related story on page 17.
In the filing, MobileMedia said it believes the TSR proposal does not meet the requirements of the stipulation to its original reorganization plan, which cleared the way for the alternative proposal. In particular, the company said the Arch plan is fully financed, while the TSR plan is not.
MobileMedia said Arch’s proposal is further along in terms of regulatory and stockholder approval and therefore is capable of being confirmed sooner than the TSR bid. Also, the company said it believes the Arch plan holds more value for all creditors, including Class 6 unsecured creditors, some of which put together the group that objected to the Arch plan and filed the opposing bid.
The bankruptcy court judge is scheduled to make a ruling on the two plans today.
Meanwhile, Arch announced an affiliated entity has completed a $147 million offering of 13.75 percent senior notes due 2008 and that a group of five lenders has executed a commitment letter for a $181 million increase to its existing $400 million credit facility in connection with the pending merger.
Lenders include The Bank of New York, Toronto Dominion Inc., Royal Bank of Canada, Barclays Bank plc and Conseco Capital Management Inc.
