McLeod Finishes Restructuring

McLeodUSA announces completion of financial restructuring, emergence from chapter 11; new stock begins trading today

April 18, 2002

1 Min Read

CEDAR RAPIDS, Iowa -- McLeodUSA Incorporated, one of the nation’s largest independent competitive local exchange carriers, announced that its Amended Plan of Reorganization of McLeodUSA Incorporated (the “Plan”) has become effective and that it has emerged from Chapter 11 protection. The Plan went into effect only 75 days after its filing. As previously announced, the Plan received overwhelming approval from all voting classes of McLeodUSA security holders and was confirmed by the United States Bankruptcy Court for the District of Delaware on April 5. Pursuant to the Plan, McLeodUSA today will distribute $670 million in cash to its senior noteholders, as well as a new Series A preferred stock and warrants to purchase new common stock. McLeodUSA today will also distribute new common stock to its old preferred stockholders. McLeodUSA new common stock will resume trading on Nasdaq on April 18 under the symbol “MCLDD.” McLeodUSA new Series A preferred stock will also begin trading on Nasdaq on April 18 under the symbol “MCLDO.” The distribution of new common stock to existing holders of common stock cannot be made until the Company is able to establish an appropriate reserve, if any, related to unresolved claims made on behalf of purported securities class action claimants. The Plan is described in detail in the Disclosure Statement with Respect to Amended Plan of Reorganization of McLeodUSA Incorporated (the “Disclosure Statement”) filed as Exhibit 99.1 to Current Report on Form 8-K filed with the Securities and Exchange Commission on March 5, 2002 and, also, in the Annual Report on Form 10-K filed with the SEC on April 12, 2002. McLeodUSA Inc.

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