Pegasus creditors want to change "no" vote after talks with company

By Caroline Salls

Pittsburgh, April 12 - A group of Pegasus Satellite Television Inc.'s creditors said they want to change their vote against the company's plan of reorganization following negotiations with the company, according to a Monday filing with the U.S. Bankruptcy Court for the District of Maine.

Since the original objection, Pegasus and the ad hoc committee of Pegasus Satellite Communications, Inc. noteholders have held discussions and negotiations regarding plan modifications. As a result of the negotiations, the filing said the creditors and Pegasus may agree to resolve the objection. Details of the agreement were not disclosed.

At a hearing on March 11, the creditors who voted against the plan objected that, under approved solicitation procedures, any creditor who voted to accept it consented to third-party releases of claims against non-debtors.

In the Monday filing, the creditors asked to be allowed to change their votes to accept the plan upon Pegasus' filing of modifications that would be agreeable to Pegasus and the ad hoc noteholders committee.

The ad hoc committee said it represents investors holding "a large portion" of Pegasus Satellite's $899 million of outstanding unsecured notes.

A hearing on the motion is scheduled for Thursday.

Pegasus filed for bankruptcy on June 2, 2004. Its Chapter 11 case number is 04-20878.

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