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NII Holdings Announces Restructuring Agreement

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Note -- this news article is more than a year old.

NII Holdings has reached an agreement with some of its debt holders that should see it exist the bankruptcy protection it entered last year.

Under the terms of the Revised Plan Support Agreement, the Company will implement a consensual reorganization of the NII Debtors following the completion of the proposed sale of the company's operations in Mexico.

The debt will be repaid in part using cash from the Mexico sale, and a partial conversion into an equity stake in the company.

The creditors have also agreed to provide $350 million in post-petition financing to fund the Company until it completes the sale of its operations in Mexico.

"Reaching this agreement is another significant step forward in our reorganization process," said Steve Shindler, NII Holdings' chief executive officer. "We are focused on strengthening our balance sheet and improving our capital structure and liquidity in order to allow us to emerge as a stronger, healthier company that is well positioned for growth and profitability."

The Plan Support Agreement requires the NII Debtors to file a revised plan of reorganization and disclosure statement that include the terms reflected in the Revised Plan Support Agreement and related term sheet and to solicit votes of creditors to approve the reorganization plan. The holders of Senior Notes that are parties to the Plan Support Agreement have agreed to vote in favor of the revised plan of reorganization.

The Company's operations in Mexico, Brazil and Argentina are not included in the pending bankruptcy proceedings and continue to operate in the ordinary course outside of Chapter 11.

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