AT&T Canada restructuring plan approved by courts, to emerge from bankruptcy April 1

By Carlise Newman

Chicago, Feb. 25 - AT&T Canada Inc. said its restructuring plan has been approved by the Ontario Superior Court of Justice and the U.S. Bankruptcy Court at hearings held earlier Tuesday.

Having secured the necessary creditor and court approvals, AT&T Canada expects to emerge from Companies' Creditors Arrangement Act proceedings on April 1 as an independent company, with positive cash flow and net income, and no long-term debt.

On Feb. 20 the company's plan was approved by 91% of the its bondholders and other affected voting creditors, representing 99% of the total value of affected claims that were voted at the meeting.

Based on a scheduled plan implementation date of April 1, the anticipated record date for bondholders and other affected creditors to receive a distribution under the plan is March 25. AT&T Canada said that on or about March 26, it intends to indicate by public notice the approximate amount of cash and shares that will be distributed, based on various assumed claim levels. As previously announced, the amount will be a pro-rata distribution of cash in an aggregate amount which is estimated to be $240 million, but not less than $200 million.

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