NEON Emerges From Ch. 11

NEON Communications completes financial restructuring and comes out of Chapter 11

December 23, 2002

1 Min Read

WESTBOROUGH, Mass. -- NEON(R) Communications, Inc., a leading provider of advanced optical networking solutions and services in the northeast and mid-Atlantic markets, announced today that it has completed its financial restructuring and has emerged from Chapter 11 proceedings. Its Plan of Reorganization was approved by the United States Bankruptcy Court for the District of Delaware on November 13, 2002, and became effective on December 20, 2002. Under the Company's Plan of Reorganization, existing shares of NEON Communications stock (NOPTQ-pk) have been cancelled. The Company has issued new shares of common stock, 12% cumulative convertible preferred stock and warrants to execute the Plan and raise approximately $15.9 million in new equity financing from former major creditors, including Northeast Utilities. NEON's new Board of Directors consists primarily of representatives from its former major creditors and new investors. The management team in place during the restructuring will continue to guide the Company and position it for continued long-term growth. Stephen Courter, NEON's chairman and CEO said: "NEON's timely emergence from Chapter 11 and our ability to grow our business during the restructuring period reflects the overwhelming support we received from our creditors, the loyalty of our customers and the commitment of our employees." Mr. Courter went on to say "NEON emerges as a financially stronger company. We are debt free, EBITDA positive and we have new financing in place that we believe fully funds our business plan. We are well positioned to grow our business and to continue providing reliable service to our customers." NEON Communications Inc.

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