Sprint PCS affiliate iPCS Inc. emerged from bankruptcy protection with the approval of its reorganization plan and said it has filed an application to begin trading its newly issued common stock on the Pink Sheets under the trading symbol IPCS.
The carrier’s reorganization plan called for the repayment of iPCS’ senior secured credit facility; cancellation of its $300 million 14-percent senior discount notes due 2010 and other unsecured non-convenience claims in exchange for its new common stock; discharge of all of its subordinated claims and the cancellation of all of its existing common stock; assumption of its amended Sprint PCS affiliation agreement and the settlement of previously stayed litigation against Sprint; and the merger of iPCS Escrow Co. into iPCS Inc. as the surviving corporation and the release from escrow to iPCS of the net proceeds of the $165 million 11.5-percent senior notes due 2012.
“We are pleased to be entering a new phase of our business, emerging from reorganization with a new capital structure and the liquidity necessary to participate in the anticipated continued growth and evolution of the wireless business,” said Timothy Yager, who was appointed president and chief executive officer of iPCS as part of the reorganization.
The carrier reached an amended affiliate agreement with Sprint PCS earlier this year that called for a reduced rate structure for services Sprint PCS provided to iPCS and the extension of a fixed roaming rate, as well as pending litigation between the two companies clearing the way for the approval of its reorganization plan.
