The U.S. Bankruptcy Court for the Southern District of California approved Leap Wireless International Inc.’s disclosure statement filed in connection with the company’s proposed reorganization plan, which Leap said it plans to mail to creditors and shareholders by Aug. 7 and expects to be approved at a confirmation hearing scheduled for late September.
“The court’s approval of our disclosure statement and setting of the confirmation hearing date underscores the progress we have made in this process,” explained Harvey White, chairman and chief executive officer of Leap, which filed for bankruptcy protection April 14. “The support we have received from our creditor committees for our proposed plan of reorganization gives us confidence in an expedient conclusion to the company’s restructuring.”
Leap also reported that it will stop offering its Cricket wireless service in Hickory, N.C., effective Sept. 30 following an evaluation of the performance of the market against performance objectives the company said it expects from all of its markets. Leap added that it does not expect a reduction in its workforce as a result of the decision, and customers in the Hickory market will receive Cricket service at no charge until the scheduled shutdown.
“We are taking steps to limit the impact of this action for our customers in this market and to ensure that they have ample time to transition to another provider for their telecommunications needs,” said Susan Swenson, president and chief operating officer of Leap.
