Source: Daily Deal
 
A Delaware bankruptcy judge late Wednesday, Oct. 9, approved ICG Communications Inc.'s reorganization plan, which will wipe out about $2.5 billion in debt.
 
Upon emerging from bankruptcy, ICGs bank debt will be reduced from $85 million to $59 million. Total funded debt, which includes the bank debt, capital leases, buildings, and other obligations, will total $205 million. The company will have $80 million to $85 million in cash.
 
Cerberus Capital Management is providing $25 million in exit financing in the form of a secured subordinated note. In exchange, it will receive a 14% stake in the company. The rest of the equity will go to general unsecured creditors, who had claims of about $1.4 billion.
 
ICG has a nationwide data and voice network, with operations in dozens of cities. Its customers include other service providers and medium to large businesses. The Englewood, Colo.-based company filed for bankruptcy protection in Nov. 2000.
 
Miller Buckfire Lewis, Dresdner Kleinwort Wasserstein, Zolfo Cooper and Skadden, Arps, Slate, Meagher & Flom LLP advised the company. Houlihan Lokey Howard & Zukin and Wachtell, Lipton, Rosen & Katz represented ICG's creditors.