RCN creditors agree to extend forbearance agreements to May 17

By Jeff Pines

Washington, May 3 - RCN Corp. said its senior secured lenders and ad hoc senior noteholders' committee agreed to extend their forbearance agreements to May 17.

The current agreement was scheduled to expire at midnight Monday.

RCN missed payments on its 10 1/8% senior notes due 2010, its 9.8% senior notes due 2008, its 10% senior notes due 2007, and its 11 1/8 % senior discount notes due 2007.

The company has said if its notes and credit facilities were accelerated, it would not have the cash to pay them all in full.

RCN, a Princeton, N.J.-based telecommunications provider, expects any financial restructuring to take place through Chapter 11 proceedings.

In addition, the company said its stock will be delisted from the Nasdaq SmallCap Market on May 12.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.