Leap Wireless reorganization plan confirmed

By Carlise Newman

Chicago, Oct. 22 - Leap Wireless International Inc. said the U.S. Bankruptcy Court for the Southern District of California has confirmed the company's fifth amended joint reorganization plan.

Leap said the confirmation clears the way for the company to complete its financial restructuring and emerge from Chapter 11 with a long-term capital structure that reflects a more than 80% reduction in the company's long-term debt.

Consummation of the plan is subject to compliance with the terms and conditions set forth in the plan, including receipt of the required regulatory approval from the Federal Communications Commission.

Existing stockholders of Leap will not receive any distribution under the plan and the existing stock of Leap Wireless International Inc. will be cancelled on the effective date of the plan.

New equity securities in the reorganized company will be distributed to creditors.

Headquartered in San Diego, Leap is a wireless communications company.

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