OK Folks, this is the last post from me tonite and it is a good one:
Summary: Nucentrix with 4 subsidiaries; 25 million to work with in short term and capable of gaining more capitilization in long term; looks great as a takeover candidate with all working assets and customer base fully developed and development of larger customer base in motion as I write. Shareholder Wheeler out of Washington DC bought 10,000 more shares to add to his over 2 million shares and he bought them at .03 in February and filed his transaction with the SEC in February. This person holds over 2 million shares and bought more (check out previous post for link to all this information) Anyway, glad I got in today and will call the people tomorrow to talk with live folks. Hope I am not bugging everyone by placing all these posts. Jacalyn
Heartland Announces Confirmation of Plan of Reorganization;
Heartland Announces Name Change and Business
Restructuring
DALLAS (March 19) BUSINESS WIRE -March 19, 1999--
TELECONFERENCE ANNOUNCEMENT
Management will hold a conference call to discuss the developments
noted in this press release on March 22, 1999, at 2 p.m. (EST).
Investors can participate by dialing: 888/603-7037, pass code 1102815.
Heartland Wireless Communications, Inc., a provider of wireless
broadband network and multichannel subscription television services at
2.1 GHz to 2.7 GHz, today announced that the U.S. Bankruptcy Court for
the District of Delaware has confirmed its prenegotiated plan of
reorganization (the "Plan"), which was filed under Chapter 11 of the
U.S. Bankruptcy Code on December 4, 1998.
The company noted that the Plan received the support of all classes of
creditors voting on the Plan, including the holders of over 99% in
principal amount of the company's senior notes. The company also
announced that concurrently with its emergence from Chapter 11, it
intends to change its corporate name to Nucentrix Broadband Networks,
Inc. ("Nucentrix"), to more accurately reflect its new business plan
focus.
As disclosed in prior public filings, the confirmed Plan provides,
among other things, for the conversion of $325 million of senior and
subordinated debt into approximately 100% of the outstanding common
stock of the reorganized company. The company expects to emerge from
Chapter 11 with approximately $12 million in net long-term debt
relating to FCC spectrum licenses in over 80 markets, and available
cash of at least $25 million.
On the effective date of the Plan, which the company expects to be
April 1, 1999, the company will change its name to Nucentrix Broadband
Networks, Inc. and restructure its business in the following four
wholly owned subsidiaries: Nucentrix Internet Service, Inc. ("Nucentrix
Internet"), Nucentrix Telecom Services, Inc. ("Nucentrix Telecom"),
Nucentrix Spectrum Resources, Inc. ("Nucentrix Spectrum") and Heartland
Cable Television, Inc. ("Heartland Cable").
Nucentrix Internet will operate the company's high-speed Internet
access business. The company currently operates one high-speed Internet
business in Sherman and Denison, Texas, which provides Internet access
to medium-sized businesses and SOHOs at speeds of up to 1.54 Mbps. The
company currently is constructing a similar system in Austin, Texas,
which it expects to launch under the Nucentrix(tm) name in May 1999.
The company plans to roll out similar services in other markets.
Nucentrix Telecom will be formed to test, develop and operate wireless
broadband IP (Internet Protocol) telephony services, including wireless
local loop voice services.
Nucentrix Spectrum will own the company's MMDS spectrum rights,
including BTA (basic trading area) licenses, MMDS channel licenses and
leases and WCS (wireless communications service at 2.3 GHz) spectrum
rights, as well as the company's wireless transmission facilities and
site leases.
Heartland Cable will operate the company's existing subscription
television business, which serves approximately 158,000 subscribers in
57 markets and offers combined MMDS and DIRECTV(R) programming in 51 of
the 57 markets. This business will continue to operate under the name
Heartland Cable Television(tm).
Carroll D. McHenry, who will remain Chairman and CEO of Nucentrix,
stated, "We are extremely pleased that our financial restructuring was
confirmed by the court and overwhelmingly approved by those voting on
the plan. Now we can focus our efforts on exploiting the value of our
broadband spectrum with new business applications such as high-speed
Internet access and, over the long term, point to multipoint wireless
voice services. We believe the name change will help reflect this
redirection of our focus. We want to position Nucentrix to respond
quickly to what we see as significant demand for high-speed
communications services that are affordable to small and medium-size
businesses, and we are committed to making this happen."
The company stated that certain conditions were required to be
satisfied or waived before the Plan could become effective, including
filing a shelf registration statement on Form S-1 with the Securities
and Exchange Commission for shares of common stock of Nucentrix to be
held by persons who may be considered affiliates of the reorganized
company, and filing certain information with the Federal Communications
Commission relating to the transfer of MMDS channel rights to the
reorganized company. The company believes that all conditions to the
effectiveness of the Plan will be satisfied or waived by the
anticipated effective date of the Plan.
Heartland Wireless Communications, Inc. provides wireless broadband
network and multichannel subscription television services in the 2.1
GHz to 2.7 GHz range. Heartland operates a high-speed Internet access
business in one market, and provides wireless subscription television
service to approximately 158,000 subscribers in 57 markets. Heartland
currently holds broadband wireless spectrum rights in over 80 small to
mid-size markets in the central United States. DIRECTV is a trademark
of DIRECTV, Inc., a unit of Hughes Electronics Corporation.
Except for any historical information contained in this press release,
this press release contains forward-looking statements that involve
risks and uncertainties, including the risk of not consummating the
Plan, the inability to obtain financing and other risks and
uncertainties described in the company's 10-K for the period ended
December 31, 1998 (which the company expects to file with the SEC on or
before March 31, 1999), the company's 10-Q for the period ended
September 30, 1998, and other SEC reports of Heartland Wireless
Communications, Inc. In particular, there can be no assurance that the
company will be able to obtain the capital necessary to launch wireless
broadband IP services such as Internet access services in additional
markets or to test, develop and operate wireless broadband IP telephony
services.
-0- na/da*
CONTACT: Heartland Wireless Communications, Inc., Dallas
Carroll D. McHenry, 972/633-4037
or
Marjean Henderson, 972/633-4035
KEYWORD: TEXAS DELAWARE
INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS
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