SARASOTA, Fla.-Pinnacle Holdings Inc. said the U.S. Bankruptcy Court for the Southern District of New York confirmed the company’ reorganization plan, which Pinnacle will attempt to complete by Aug. 20.
The plan will be funded by an equity investment up to $205 million by Fortress Investment Group and Greenhill Capital Partners, and by an approximately $340 million new credit facility, Pinnacle said.
Pinnacle Holdings will be merged into a newly formed Delaware corporation formed by the investors, to be called New Pinnacle.
Fortress will purchase up to 13.735 million shares of common stock of New Pinnacle, and Greenhill will purchase up to 6.765 million shares. Holders of senior notes can exchanges their stock for up to $114 million in cash, or a combination of cash and up to 49.9 percent of New Pinnacle’s outstanding common stock.
Holders of convertible notes can exchange their stock for up to $500,000 in cash and five-year warrants to purchase up to approximately 205,000 shares of New Pinnacle at around two times the price of the investor shares.
Pinnacle said former stockholders and plaintiffs in a stockholder class action lawsuit will receive five-year warrants to purchase up to 102,500 shares of New Pinnacle common stock at approximately two times the price of the investor shares.
As of March 31, 2001, Pinnacle owned, managed or held the rights to about 4,000 wireless towers.
