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ITC DELTACOM
ITO DeltaCom, Inc, provides voice and data telecom­munications services on a retail basis to businesses in the southern United States. The company defaulted when it missed the May 15, 2002 interest payments on two of its bonds. ITO filed a pre-packaged Chapter 11 petition June 25, 2002 in the District of Delaware. In a vote reminiscent of the recent Iraqi election, 100% of the convertible bond­holders voted YES for the plan. The court confirmed the plan October 22, 2002 with overwhelming support of stock and bondholders. The plan calls for all bond debt to be cancelled in return for equity in the reorganized company. Holders of $415 million in senior bonds will receive 81.5% of the new common stock, while holders of $100 million in subordinated convertible bonds will receive 5%. Current common stockholders, Series A preferred stock and Series B preferred stockholders would receive a total of 1% of the new common stock. The company’s total indebtedness will be reduced from approximately $724 million as of March 31, 2002 to approximately $194 million of indebtedness under its senior credit facility and capital leases. The only default if no senior bonds remained outstanding Only when all the senior bonds were retired could the bonds he in default The senior bonds were retired, exposing the subor­dinated bonds to default. The December 3. 2001 principal and interest payments were not made. On October 1 2002 a partial payment of $82 per $1000 principal amount will he made and applied to past due interest. Cusip (491362BD).