CoServ Files Reorganization Plans.Business Editors CoServ Electric and eight of its related companies, including the CoServ telephone and cable businesses, announced today that plans of reorganization and other related disclosure statements were filed June 24 in the U.S. Bankruptcy Court for the Northern District of Texas. CoServ Realty Holdings, L.P. filed its reorganization plan and disclosure statement June 13. It is anticipated that the CoServ entities currently moving through the reorganization process will emerge from this process before or during the fourth quarter of 2002. The CoServ Electric plan was filed by CoServ Electric, CoServ Utility Holdings, L.P. and CoServ Investments, L.P., and was filed jointly with the National Rural Utilities Cooperative Finance Corporation (CFC), embodying the global settlement reached by the parties on May 2, 2002. The CoServ Electric plan provides for the continued existence of the electric cooperative for the benefit of its members, payment in full payment in full n. the giving of all funds due to another. This language is often inserted on the back of check above the place for endorsement to prove that the payee accepts the payment as complete. of all allowed claims of the debtors' estates and the establishment of a $200 million 10-year credit facility for future capital expenditures of the electric cooperative. Exit financing is provided by both CFC and CoBank, ACB ACB - Access Barred Signal ACB - Access Control Block ACB - AcerĂa Compacta de Bizkaia (Spain) ACB - Adapter Control Block ACB - Adjusted Cost Base ACB - Administrative Contract Brief ACB - Advanced Communications Board ACB - Advanced Concepts Base ACB - Advertising Checking Bureau ACB - Agricultural Credit Bank ACB - Air Circuit Breaker (electric power distribution systems) ACB - Air Combat Brigade ACB - Air Contingency Bulletin, another electric cooperative lending institution. The CoServ Realty plan likewise provides for payment in full to all creditors, including CFC, which will receive a transfer of the debtor's real estate developer loan portfolio. This plan will provide for the continued funding of the developer loans by CFC. The CoServ Telecom plan provides for payment of an estimated 70% of all claims to the creditors of the CoServ telecom companies. The telecom companies previously announced debtor in possession financing from CFC in the amount of $7.8 million, which will provide funding through the end of 2002. If the assets are not sold prior to that time, the ownership of the operations will be transferred to CFC. The customers of CoServ Communications are expected to continue receiving uninterrupted service through this plan. "We will emerge from bankruptcy with a stronger balance sheet, poised for future growth and focused on our core electric business," said Bill McGinnis, president and chief executive officer of CoServ Electric. "This plan is a great outcome for our members and our creditors." For nearly 65 years, CoServ Electric has provided dependable, affordable, electric power to thousands of homes. In 1998, CoServ Electric expanded both its service area and its service offerings to include a broad range of services, including telephone and cable. Further information on CoServ Electric is accessible at www.coserv.com. |
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