Pac-West Telecomm Gains Court Approval for Disclosure Statement
06 September 2007 - 8:20PM
PR Newswire (US)
- Significant step forward in Pac-West's reorganization following
its April 2007 Chapter 11 filing STOCKTON, Calif., Sept. 6
/PRNewswire-FirstCall/ -- Pac-West Telecomm, Inc. (Pink Sheets:
PACW), a wholesale provider of advanced telecommunications
services, today announced that the U.S. Bankruptcy Court for the
District of Delaware has approved the disclosure statement to its
Modified Second Amended of Reorganization ("Plan") and scheduled a
confirmation hearing for October 22, 2007. The Court authorized
Pac-West to distribute its Plan and disclosure statement to
creditors and to solicit votes in favor of its Plan. Pac-West
intends to mail the documents on or before September 10, 2007. The
Plan includes negotiated arrangements for the sharing of proceeds
among Pac-West's secured and unsecured creditors. The Plan has the
support of several important creditor classes holding a majority of
Pac-West's secured debt and the support of its official committee
of unsecured creditors. Assuming confirmation by the Court, the
Plan would become effective upon satisfaction of certain other
conditions and consummation of the previously-approved plan funding
agreement between Pac-West and the Plan sponsor, an affiliate of
existing investor Columbia Ventures Corporation. The Plan provides
that, upon exit from chapter 11, the stock of Pac-West would be
wholly-owned by the Plan sponsor. "We are very pleased to have
gained the support of the official committee of unsecured creditors
and to have court approval for the Company's disclosure statement,"
Pac-West's President and CEO, Wally Griffin, said. Pac-West's chief
restructuring officer, Michael Katzenstein, noted that Pac-West
remains on track to emerge from Chapter 11 protection in the next
few months. About Pac-West Telecomm, Inc. Pac-West is a provider of
advanced communications services that enable traditional and
next-generation providers, carriers, and service providers to
efficiently design, deploy, and deliver integrated communication
solutions. Founded in 1980, Pac-West Telecomm, Inc. has been
offering communication services to its customers since 1982 and has
been a leading provider of wholesale services to Internet Service
Providers. For more information about Pac-West and its
reorganization, visit http://www.pacwest.com/. Forward Looking
Statements In this report, our use of the words "outlook,"
"expect," "anticipate," "estimate," "forecast," "project,"
"likely," "objective," "plan," "designed," "goal," "target," and
similar expressions is intended to identify forward-looking
statements. While these statements represent our current judgment
on what the future may hold, and we believe these judgments are
reasonable, actual results may differ materially due to numerous
important risk factors, including risk factors described in our
Annual Report on Form 10-K for the period ended December 31, 2005,
as filed with the SEC on March 29, 2006, as revised and
supplemented by the risk factors described in our Quarterly Reports
on Form 10-Q for the quarters ended March 31, 2006, June 30, 2006
and September 30, 2006, as filed with the SEC on May 12, 2006,
August 11, 2006 and November 20, 2006 respectively, and which may
be further revised or supplemented in subsequent reports filed by
us with the SEC. Such risk factors include, but are not limited to
risks associated with: our ability to successfully reorganize under
Chapter 11 of the U.S. Bankruptcy Code; our ability to comply with
the covenants contained in, or the possibility of triggering a
default under, our DIP financing facility; our ability to execute
our business plans and objectives; our ability to retain customers,
suppliers; vendors, partners and employees during our
reorganization; regulatory and legal uncertainty with respect to
intercarrier compensation payments received by us; the migration to
broadband Internet access affecting dial-up Internet access; an
increase in our network expenses; our principal competitors for
local services and potential additional competitors, which may have
advantages that may adversely affect our ability to compete with
them. DATASOURCE: Pac-West Telecomm, Inc. CONTACT: Millie Virgil of
Pac-West Telecomm, Inc., +1-209-926-3490 Web site:
http://www.pacwest.com/
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