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NII Holdings agrees debt-for-equity swap
2014-11-25 09:12:00| Telecompaper Headlines
(Telecompaper) NII Holdings has reached a restructuring agreement with its major creditors. After filing for chapter 11 protection in the September, the mobile operator and twelve of its wholly-owned subsidiaries have now reached an agreement with their major stakeholders, including their two largest creditors and the official committee of unsecured creditors. The reorganization plan will strengthen the company's balance sheet by converting USD 4.35 billion of unsecured notes into equity interests in the reorganized company; enhance the company's liquidity by providing USD 500 million of new capital through a fully backstopped USD 250 million rights offering available to holders of the company's senior notes and an additional USD 250 million of exit financing in the form of debt; and implement a global settlement of all claims related to certain complex intercompany and inter-creditor disputes. CEO Steve Shindler said the plan provides "a path for the company to emerge from bankruptcy in a healthy financial position to effectively compete in the wireless marketplace". The plan remains subject to court approval before its implementation.
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Category:Telecommunications