CDMA Network Files for Bankruptcy Protection

Horizon PCS, an affiliate of the CDMA network operator, SprintPCS, and two of its subsidiaries have filed voluntary petitions for relief under Chapter 11 of Title 11 of the United States Code in the United States Bankruptcy Court for the Southern District of Ohio.

"While the recent implementation of a cash conservation strategy leaves Horizon PCS with a relatively strong cash position, this filing should give us more flexibility to complete transactions in the interest of our stakeholders," said William A. McKell, Chairman and CEO. "We believe the bankruptcy process gives us the best opportunity to restructure our debts and agreements, working cooperatively with our creditors and negotiating with Sprint to develop equitable and appropriate solutions that will allow our company to continue to operate." Horizon Telcom, Inc. is not included in the filing and will continue operating in the ordinary course of business.

The Company and its subsidiaries expect to continue to manage their properties and operate their businesses in the ordinary course of business as "debtors-in-possession" subject to the supervision and orders of the Bankruptcy Court pursuant to the Bankruptcy Code.

Horizon PCS laid off nearly 300 employees in late July as part of a restructuring effort to cut costs."

Posted to the site on 18th August 2003