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RCN emerges from Chapter 11
By Jeff Pines
Washington, Dec. 22 - RCN Corp. has emerged from Chapter 11, the company said.
To finance its emergence, RCN used its $330 million seven-year senior secured facility through Deutsche Bank AG Cayman Islands and issued $125 million of 71/2-year 7.5% convertible second-lien notes to certain investors and holders of the company's pre-Chapter 11 bonds.
The proceeds from the Deutsche Bank facility and the convertible second-lien notes were mostly used to pay in full secured debt held by a syndicate of lenders led by JPMorgan Chase Bank.
In addition, the Princeton, N.J.-based telecommunications provider closed the purchase of Pepco's 50% stake in Starpower Communications LLC. The acquisition gives RCN full ownership of the Washington, D.C., market for bundled telephone, cable television and high-speed internet services, it said.
RCN filed for bankruptcy on May 27, 2004 in the U.S. Bankruptcy Court for the Southern District of New York. Its Chapter 11 case number is 04-13638.
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