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Otelco, Inc. Message Board

  • markramey Feb 1, 2013 10:54 AM Flag


    The IDS consists of one share of common stock--which will be wiped out--and $7.50 principal of the Senior Subordinated Note. The note part may take a haircut but will still have considerable value.

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    • Right,
      the outstanding Notes, including the outstanding Notes constituting part of Otelco’s Income Deposit Securities (“IDSs”), will be cancelled and the holders of outstanding Notes, including Notes held through IDSs, will receive their pro rata share of Otelco’s new Class A common stock, which new Class A common stock will represent 92.5% of the total economic and voting interests in Otelco immediately following the consummation of the Restructuring, subject to dilution on account of the issuance of equity interests in Otelco pursuant to the Management Equity Plan; and

      the outstanding shares of Otelco’s existing common stock, all of which currently constitute part of the IDSs, will be cancelled.