Acterna emerges from Chapter 11

By Carlise Newman

Chicago, Oct. 15 - Acterna emerged from chapter 11 protection Wednesday.

Acterna's plan of reorganization received support from all classes of creditors and was confirmed by the U.S. Bankruptcy Court for the Southern District of New York on Sept. 25.

Acterna subsidiary, da Vinci, has also emerged from chapter 11 protection.

Under the terms of Acterna's plan, holders of its senior secured debt receive 100% of the company's equity through a debt-for-equity swap.

Acterna emerges as a privately held company with long-term debt of $190 million and quarterly cash interest expense of less than $2 million.

Holders of Acterna's convertible and subordinated notes will receive warrants having de minimis value. Unsecured creditors receive a cash distribution of 10% of their claims.

Current equity holders will receive no distribution under the terms of the plan.

Acterna filed for bankruptcy on May 6.

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