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Technology Stocks : CAWS - Wireless Cable (New and Improved) -- Ignore unavailable to you. Want to Upgrade?

To: .com who wrote (5688)	10/6/1998 1:37:00 PM
From: Joseph Moran	Read Replies (2) \| Respond to of 5812

Same Management as CAI?? "Tuesday October 6, 12:48 pm Eastern Time Heartland to file for Chapter 11 DALLAS, Oct. 6 (Reuters) - Struggling Heartland Wireless Communications Inc. said Tuesday it plans to voluntarily file for Chapter 11 bankruptcy protection, paving the way for a reorganization plan to convert about $323 million in debt into common stock for its creditors. The wireless cable television provider said that, under its plan, holders of its senior notes will receive about 97 percent of the reorganized company's issued and outstanding common stock in exchange for canceling the debt. The company, which on Aug. 14 reported a $50.6 million second quarter loss including charges, said it will emerge with no long-term debt except for about $15 million of installment notes payable to the Federal Communications Commission. These notes are for the company's ''basic trading areas'' or ''BTAs'' and certain capital lease obligations, the company said. Heartland's stock was down 1/32 at 1/4, near its 52-week low of 7/32, on the Nasdaq Stock Market in midday trading. The company said it had reached the reorganization agreement with the holders of a majority in principal amount of its $115 million in 13 percent senior notes due 2003 and $125 million in 14 percent senior notes due 2004. The plan, if pursued, will allow the company to convert these senior notes and its 9 percent convertible subordinated discount notes due 2004 into new shares of Heartland common stock, the company said. The $323 million aggregate amount of debt to be converted includes $240 million in principal amount of the senior notes and $26 million of accrued interest. It also includes $57 million in subordinated notes, the company said. The company said it intends to file the plan with a U.S. Bankruptcy Court on or before Nov. 13. The company said holders of the subordinated notes, existing common stock and certain litigation claims will receive the remaining 3 percent of the reorganized Heartland's common stock. They will also get warrants to buy 10 percent of the common stock of the reorganized Heartland on a fully diluted basis, the company said. The reorganization plan will provide for continued payment of trade creditors in the ordinary course of business including vendors, programmers, landlords, the FCC and other entities. The plan will also provide for uninterrupted payment of all material employee wages and benefits, the company said.