CoreComm completes exchange

New York, July 1 - CoreComm Ltd. said it completed its recapitalization, including an exchange offer for its convertibles.

The company said $392 million principal amount of its 6% convertibles subordinated notes due 2006 were tendered in the exchange and 448,666,063 shares. In addition to the stock, which represents 92.2% of the shares outstanding, a further 771,077 shares were guaranteed for delivery.

The exchange offer was launched on Feb. 8 and repeatedly extended while CoreComm addressed comments from the Securities and Exchange Commission.

The New York City and Bala Cynwyd, Pa.-based communications company was offering:

--For holders of CoreComm common stock, each share will be exchanged for 1/38.9 of a share of the common stock of the reorganized company, called CoreComm Holdco;

--For holders of CoreComm's 6% convertible subordinated notes due 2006, each $1,000 principal amount will be exchanged for 9.1047 shares of the new company and $30 in cash, the cash being set equal to the unpaid Oct. 1, 2001 interest payment.

CoreComm in December exchanged $160 million of its convertibles - of which it originally issued $175 million - for about 5% of its stock and $5 million in cash.

It also exchanged its $10 million of 10.75% unsecured convertible PIK notes due 2011, $16.1 million 10.75% senior unsecured convertible PIK notes due 2010, $105.7 million senior unsecured notes due Sept. 29, 2003 and $300 million of preferred stock for the other 82% of its equity.

Following completion of the exchange CoreComm said all holders of its common stock now hold shares in its formerly wholly-owned subsidiary CoreComm Holdco, Inc.

CoreComm Holdco will begin trading on Nasdaq on July 2.

Within the next two weeks, the company will change its name to ATX Communications, Inc.

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