Wireless cable...........................................
multichannel.com
October 06, 1998
MMDS Op to File for Bankruptcy
Dallas -- Heartland Wireless Communications Inc., a wireless cable company with 166,000 subscribers in 57 markets, plans to file a pre-negotiated Chapter 11 reorganization plan with the U.S. Bankruptcy Court by Nov. 13.
As part of its reorganization, Heartland said it has reached agreement with the holders of a majority of its $115 million in 13 percent senior notes due 2003 and its $125 million in 14 percent senior notes due 2004.
According to the agreement, Heartland will convert the senior notes, and its 9 percent convertible subordinated discount notes due 2004, into 97 percent of common stock in the reorganized company. The amount of debt to be converted will be $323 million -- $240 million in senior notes, $26 million in accrued interest and $57 million in subordinated notes.
The plan will eliminate Heartland's long-term debt, save for about $15 million payable to the Federal Communications Commission and certain capital-lease obligations.
"Because of the enormous burden of servicing our long-term debt, we believe that this action is the best alternative to allow the company to strengthen its balance sheet, execute its future business plan and maximize the value of its assets," said Carroll McHenry, Heartland's chairman, president and CEO, in a prepared statement.
- 10/6/98
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