Otelco Enters Ch. 11 But Plans On A Short Stay

Law360, New York (March 25, 2013, 7:31 PM EDT) -- Wireline telecommunications provider Otelco Inc. officially filed for Chapter 11 bankruptcy protection Sunday in a move the company hopes will cut its debt in half to about $135 million.

The filing in Delaware bankruptcy court comes after a prepackaged bankruptcy deal had been accepted by all of the company’s senior lenders in February, as well as holders of more than 96 percent of Otelco’s senior subordinated notes who cast ballots, according to the company.

“Our proposed plan represents the best possible outcome for the company and...
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