Wednesday, March 29, 2006

Birch Telecom Exits Chapter 11 with Lower Debt

Birch Telecom, which serves 130,000 customers in mid-sized markets in 12 states, emerged from Chapter 11 bankruptcy protection. As part of the reorganization, Birch issued 100% of its post-emergence equity to its secured lenders. In addition, Birch's pre-petition secured debt of $108 million has been reduced to $35 million in reinstated debt held by the secured lenders. Other creditors will receive distributions as provided under the bankruptcy plan.

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