Otelco Announces Restructuring Transaction
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.
The Company will hold a conference call to discuss the planned chapter 11 filing with investors on Friday, February 1, 2013, at 1:00 p.m. (Eastern Time). To listen to the call, participants should dial 719-325-4858 approximately 10 minutes prior to the start of the call. A telephonic replay will be available from 3:00 p.m. (Eastern Time) on February 1, 2013 through midnight on March 31, 2013 by dialing (719) 457-0820 and entering Confirmation Code 3741326. The live broadcast of Otelco’s conference call will be available online at www.OtelcoInc.com on February 1, 2013, beginning at 1:00 p.m. (Eastern Time). The online replay will be available at approximately 3:00 p.m. (Eastern Time) and continue for 60 days . A transcript of the call will also be available on the Company’s website on Monday, February 4, 2013 by the close of business.
FORWARD LOOKING STATEMENTSStatements in this press release that are not statements of historical or current fact constitute forward-looking statements. Such forward-looking statements involve known and unknown risks, uncertainties, and other unknown factors that could impact the Company’s restructuring plans or cause the actual results of the Company to be materially different from the historical results or from any future results expressed or implied by such forward-looking statements. In addition to statements which explicitly describe such risks and uncertainties, readers are urged to consider statements labeled with the terms “believes,” “belief,” “expects,” “intends,” “anticipates,” “plans,” or similar terms to be uncertain and forward-looking. There can be no assurance that the restructuring transaction described herein will be consummated. The forward-looking statements contained herein are also subject generally to other risks and uncertainties that are described from time to time in the Company’s filings with the Securities and Exchange Commission.
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