Troubled Galaxy Telecom L.P. said it has entered into agreements with its
bank lenders and bondholders on a prepackaged Chapter 11 bankruptcy plan that
will restructure its existing debt and equity.
In a prepared statement, Galaxy said it has reached terms with about
two-thirds of holders of its $120 million in 12.375 percent senior notes. The
company said creditors have until Oct. 15 to vote on the plan. Galaxy plans to
submit the prepackaged Chapter 11 plan to the Bankruptcy Court of the Eastern
District of Missouri on or before Oct. 31.
Over the past year, Galaxy has defaulted on interest payments on that debt
several times. The MSO has about 109,000 mostly rural subscribers in 15 states,
including Mississippi, Nebraska, Kentucky and Illinois.