Rural telecommunications provider Ntelos Inc. reported that a bankruptcy court approved its disclosure statement, which provides details regarding Ntelos’ joint plan of reorganization and allows the company to begin soliciting votes for confirmation of its reorganization plan.
Ntelos added that its reorganization plan is consistent with the plan support agreement it entered into with a majority of its bank lenders, and the official committee of unsecured creditors has issued a letter to the company’s unsecured creditors supporting confirmation of the reorganization plan and encouraging a vote to accept the plan.
“The support of our creditors’ committee and bank lenders for our proposed joint plan of reorganization gives us confidence in a favorable and expedient conclusion to our reorganization process,” said James Quarforth, chief executive officer of Ntelos. “Although we must await the outcome of the vote and the court’s ruling at the confirmation hearing, we are optimistic that the company is on track to emerge from bankruptcy in the third quarter of 2003.”
Ntelos, which operates a CDMA network in parts of Virginia, West Virginia, Kentucky and North Carolina, filed for Chapter 11-bankruptcy protection in March in an attempt to reduce its debt.
