CARY, N.C.-Tower owner SpectraSite Holdings Inc. said it will file for Chapter 11 bankruptcy protection, a move it said 66 percent of holders of its senior notes support.
As SpectraSite indicated in previous financial disclosures, SpectraSite Communications Inc., the subsidiary that operates the company’s towers will not be affected by the bankruptcy filing and the filing will not affect the subsidiary’s $1.1 billion senior credit facility.
Chapter 11 will eliminate the holding company’s debt and reduce future consolidated annual interest expenses by about $200 million. Agreements with senior note holders will terminate if the plan is not filed by Nov. 15.
In addition to official approval by holders of claims, SpectraSite said the completion of the plan is subject to completion of certain transactions with Cingular or SBC. SpectraSite said that on emergence from Chapter 11, a new 5-member board of directors, to include CEO Steve Clark, will be elected.
Shares of SpectraSite were down 25.45 percent to trade at 16 cents per share following the news.
