United Pan-Europe Communications emerges from bankruptcy

By Carlise Newman

Chicago, Sept. 3 - United Pan-Europe Communications NV has emerged from Chapter 11 proceedings and Dutch moratorium and akkoord proceedings.

The reorganization plan was confirmed by the U.S. court on Feb. 20. The Dutch moratorium and akkoord proceeding were ratified by the Dutch district court on March 13. An appeal by InterComm Holdings LLC, a creditor in the Dutch moratorium proceeding with a €1.00 claim and one vote for voting purposes was rejected by the Dutch supreme court on Aug. 26.

The company's recapitalization has delivered its balance sheet through the conversion of €925 million in Belmarken notes and €4.3 billion accreted value of United Pan-Europe notes into common stock of UGC Europe Inc. United Pan-Europe will become a private subsidiary of UGC Europe. The recapitalization has eliminated 65% of United Pan-Europe's outstanding consolidated debt and all of its convertible preference shares.

The plan assumes an exchange rate of $0.9968 per €1.00

UPC's ADR program will be cancelled as of Sept. 3. It is expected that Sept. 4 will be the last day of trading for UPC ordinary shares A on the Euronext Amsterdam with the listing terminating on Sept. 5.

UGC Europe expects to issue 50 million shares of its common stock to United Pan-Europe's creditors and equity holders. These shares will be quoted on the Nasdaq as of Sept. 3. Approximately 16.25 million of the shares were issued to third party holders of United Pan-Europe notes and 32.75 million shares were issued to UnitedGlobalCom, Inc. in exchange for the Belmarken notes and United Pan-Europe notes owned by UnitedGlobalCom. Additionally, 1 million UGC Europe shares will be issued to holders of United Pan-Europe'S preference shares, ordinary shares A and priority shares. UGC Europe has reserved additional shares of its common stock to settle any additional claims according to the plan and the akkoord.

As previously announced, bank lenders under United Pan-Europe Distribution Holding BV bank facility had extended waivers of the defaults arising as a result of the company's decision not to make interest payments on its outstanding notes until Sept. 30. As a result of the company's emergence from restructuring, the waivers are no longer needed and the bank facility remains in place.

United Pan-Europe is a broadband communications company based in Amsterdam.

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