Wireless cable has had a rough time. Divi customer CAI..............
multichannel.com
October 05, 1998
Court OKs CAI Bankruptcy Plan
Albany, N.Y. -- A U.S. Bankruptcy Court in Wilmington, Del., has approved CAI Wireless Systems Inc.'s Chapter 11 reorganization plan, CAI said.
CAI, a wireless cable operator, filed the plan with the court in July. The reorganization will give holders of the company's 12.25 percent senior notes, due in 2002, $16.4 million in cash, $100 million in newly issued bonds -- due in 2004 -- and 91 percent of the stock in a newly organized company.
Current CAI stockholders will receive nothing for their investments. However, secured lenders, who are owed about $52 million, will be repaid, according to the plan.
Holders of subordinated indebtedness will receive their pro rata share of the remaining 9 percent equity in the reorganized company.
CAI has been on a roller-coaster ride since late 1996, when Bell Atlantic Corp. pulled the plug on a $100 million investment. The company has been desperately trying to raise cash, and it was successful earlier this year in attracting $60 million in interim financing from Merrill Lynch Global Allocation Fund.
CAI's stock, traded on the over-the-counter bulletin board, closed at 3 cents per share Oct. 2, unchanged from the previous day.
- 10/5/98
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