RealTime IT News

Arch Turns Page on Bankruptcy

A reorganization plan for Arch Wireless has won court approval, clearing the way for the Westborough, Mass., messaging company to exit Chapter 11 bankruptcy by month's end.

The plan implements the terms of its previously announced agreement with a majority of the company's secured creditors and reduces Arch's long-term debt to approximately $300 million.

In its filing, the company said those actions would release and discharge all existing debts and equity securities. Arch will issue approximately 20 million shares of new common stock. Its new trading symbol is expected to be 'AWIN' on the Nasdaq.

"This new financial foundation affords us the opportunity to pursue growth opportunities in the promising market for two-way wireless messaging and wireless mobile data as well as enhances our ability to provide traditional paging services," said C. Edward Baker Jr., Arch chairman and CEO.

Arch's nationwide business operations have continued to operate normally since the company first filed for protection from its creditors in December, Baker said. The performance is a due to the company's 4,800 employees.

"Arch's team members exhibited extraordinary dedication and patience during the restructuring process and we thank them," Baker said.

Arch is one of several wireless firms facing financial difficulty. Wireless Internet service provider OmniSky sold its assets to EarthLink and Motient recently filed a reorganization plan.