The chapter 11 process is designed to allow a company to continue its operations both during and after the filing. Thus, neither the solicitation nor the actual filing is expected to impact Otelco’s day-to-day operations. Otelco will continue to provide its customers with the quality services they have come to expect. “This filing will have no impact on our operations,” stated Michael Weaver, CEO of Otelco. “Our offices are open, all our employees are working and we’re still providing excellent service to all our customers. We hope to be in chapter 11 for a brief period of time. We have significant liquidity and it’s business as usual for us.” In addition, Otelco is, and intends to remain, current with all of its vendors.“Our proposed plan, with the extension of the existing senior credit facility, will reduce total debt, simplify our capital structure and strengthen our balance sheet. I am confident that this restructuring represents the best possible outcome for the Company and our IDS unit holders, and I highly encourage the IDS holders to support it with a ‘yes’ vote during the solicitation,” continued Weaver.
Otelco Announces Restructuring Transaction
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