Canadian fiber optic network operator 360networks has announced that it will be in a sound financial position by mid-October following the decision by the British Columbia Supreme Court to approve the company’s reorganization plan. The approval of the plan will mean that 360networks will emerge from bankruptcy protection before other global network operators such as Global Crossing, Teleglobe and WorldCom.
The reorganization plan will see the company’s secured creditors convert a large proportion of their debt for an 80% stake in the reorganized company. 360networks’ unsecured creditors will receive a 12% stake in the company for converting around $400 million. Shareholders and holders of $1.4 billion in unsecured bonds will receive no share of the reorganized company.
360networks had planned to run a global high-speed network but the business collapsed after it defaulted on part of its $2.9 billion debt. The company has been in bankruptcy protection from its creditors since June 2001.