UniTek term lenders get 10 million common, 70 million preferred shares

By Caroline Salls

Pittsburgh, Jan. 20 – UniTek Global Services, Inc. said holders of term loan claims received 10 million shares of new common stock and 70 million shares of new preferred stock in exchange for $118.7 million in debt, according to an 8-K filed Tuesday with the Securities and Exchange Commission.

As previously reported, the company’s Chapter 11 plan of reorganization took effect on Jan. 13. As of that date, term loan claimants owned 100% of the company’s equity interests.

UniTek said chief executive officer Rocky Romanella and chief operating officer Donald W. Gately left the company on the plan effective date. John Haggerty was appointed interim CEO.

As of Jan. 13, Robert E. Davis, Michael B. Kaplan, John R. Kline, Robert A. Hamwee, Robert Warshauer, Keith A. Maib and Haggerty were appointed to UniTek’s board of directors.

The company said the directors were appointed in accordance with the plan. Davis and Kaplan are associated with Cetus Capital, and Kline and Hamwee are associated with New Mountain Finance Corp. Warshauer was appointed at the direction of shareholders associated with Cerberus Capital Management, and Maib is the independent director appointed in connection with the plan and a stockholders’ agreement.

In addition, UniTek said it agreed to make retention payments to Daniel Yannantuano, the president of its DirectSat USA subsidiary, and CFO Andrew J. Herning in the amounts of $175,000 and $150,000, respectively.

The bonuses were paid 50% on effectiveness of the plan, and the remainder will be payable 90 days thereafter, conditioned on the officer’s continued employment with the company, the 8-K said.

UniTek, a Blue Bell, Pa.-based provider of engineering, construction management and installation fulfillment services to the telecommunications, broadband cable and satellite industries, filed for bankruptcy Nov. 3 in the U.S. Bankruptcy Court for the District of Delaware. The Chapter 11 case number is 14-12471.

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