ALEXANDRIA, Va.—Paging and messaging carrier Metrocall Inc. announced it reached a pre-negotiated plan of reorganization in Chapter 11 bankruptcy with its creditors, and will file the plan with the bankruptcy court early next month.
The move comes as no surprise. Metrocall has for the past several months been considering a Chapter 11 reorganization and has been working with its creditors on a pre-negotiated plan, according to filings with the Securities and Exchange Commission. Financially struggling companies prefer pre-negotiated bankruptcy plans to those forced by creditors.
“The company believes that its achieving consensus on a pre-negotiated plan will be a key element of its ability to now implement its plan of reorganization within a short period of time and in an efficient manner,” said William Collins, Metrocall’s chairman and chief executive officer.
Metrocall said it will continue to provide service throughout bankruptcy proceedings.
The independent, nationwide paging and messaging industry has been suffering for several years with a dwindling customer base. The No. 1 carrier, Arch Wireless Inc., filed for bankruptcy late last year and expects to emerge soon, while the No. 3 independent carrier, WebLink Wireless Inc., has been in bankruptcy for about a year, and its fate is still unclear.
