Otelco Takes First Step Toward Ch. 11 Restructuring

Law360, Wilmington (March 26, 2013, 10:17 PM EDT) -- Otelco Inc. won approval Tuesday for a series of first-day pleadings designed to keep the wireline telecommunications provider running smoothly as it proceeds through Chapter 11 with a prepackaged, preapproved plan that promises to slash its $271 million debt in half.

Signed by U.S. Bankruptcy Judge Mary F. Walrath, the motions authorize Otelco to use cash collateral, pay taxes and employee wages, and keep utilities content during what the Alabama-based company anticipates will be a quick trip through Delaware bankruptcy court.

The company is confident is...
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