Communications Corp. of America files plan; parent to contribute $10 million in exchange for new stock

By Caroline Salls

Pittsburgh, March 15 - Communications Corp. of America Inc. and debtor White Knight Holdings, Inc. filed a joint plan of reorganization and related disclosure statement Wednesday in the U.S. Bankruptcy Court for the Western District of Louisiana.

The plan will be funded through sales of roughly $75 million in assets, a $10 million capital infusion from equity contributors and revenues derived from the continued operation of the companies.

On the effective date, the equity contributors, which are Communications Corp. of America and White Knight Holdings' current owners, will contribute $10 million in cash to the reorganized companies in exchange for new common stock.

Treatment of claims under the plan will include:

• Holders of $6.3 million in administrative expense claims will recover 100% in cash;

• Holders of $206 million in GE lenders secured claims will recover 100% through payment of the sale transaction proceeds.

Until the full balance of the claims is paid in full in cash, the claims will bear interest at Libor plus 400 basis points. The balance will be paid in cash in 60 installments, beginning 30 days after the plan effective date, with interest only payable in each of the first 12 monthly installments. Following the first anniversary of the effective date, the company will pay 1% of the then outstanding balance along with the monthly payments;

• Holders of $16,000 in other secured claims will recover 100% in cash payable over three years, plus 9% interest;

• Holders of $95,000 in convenience class claims will recover 100% in cash;

• Holders of $900,000 to $1.1 million in unsecured trade claims will recover 100% in cash, with 50% to be paid on the effective date and 50% to be paid within 90 days of the effective date;

• Holders of $170 million in general unsecured claims will recover 3% through a cash distribution;

• Holders of equity interests in debtor subsidiaries will retain their interests;

• Holders of Communications Corp. of America preferred interests will receive their share of a $50,000 cash distribution; and

• Holders of Communications Corp. of America and White Knight Holdings common equity interests will receive no distribution under the plan.

Communications Corp. of America, a Lafayette, La., television station owner, filed for bankruptcy on June 7, 2006. Its Chapter 11 case number is 06-50410.

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