By Tom Becker, Bloomberg NewsRCN Corp., a provider of cable television, phone and Internet service, won court approval of an agreement to borrow up to $460 million to repay secured debt and cover some expenses once it exits bankruptcy.
RCN competes with Service Electric in the Lehigh Valley.
A Deutsche Bank AG unit will provide a $285 million term loan, $25 million for letters of credit and $150 million in additional financing as part of RCN's plan to exit bankruptcy.
The financing won't be provided until RCN wins approval of its exit plan, which the company said could be in three or four months. RCN filed for bankruptcy protection in New York last month, citing $1.49 billion in assets and $1.82 billion in debts.
''The loan is the linchpin for this restructuring,'' said Jay M. Goffman, RCN's bankruptcy lawyer. ''It is a facility that provides enough money to repay the J.P. Morgan loan and the liquidity to move forward after the bankruptcy process. It is a critical part of the reorganization.''
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