US-based NII Holdings has announced that it has reached an agreement with the holders of over 70% of the senior notes issued by each of NII Capital Corp and NII International Telecom, and the official committee of unsecured creditors, regarding the terms of a revised plan of reorganisation to be implemented in its Chapter 11 bankruptcy cases. The agreement is reflected in a ‘Revised Plan Support Agreement’ that replaces the ‘Plan Support Agreement’ entered into on 24 November 2014, which was terminated following NII’s agreement to sell its Mexican operations to a subsidiary of AT&T, in a deal announced in January 2015. ‘Reaching this agreement is another significant step forward in our reorganisation process,’ commented NII Holdings’ CEO Steve Shindler, adding: ‘We are focused on strengthening our balance sheet and improving our capital structure and liquidity in order to allow us to emerge as a stronger, healthier company that is well positioned for growth and profitability.’
Under the terms of the Revised Plan Support Agreement, NII will implement a consensual reorganisation of the NII Debtors following the completion of the sale of its operations in Mexico. The plan will: provide for the conversion of the Senior Notes into a combination of cash representing a portion of the net proceeds received from the sale of the company’s operations in Mexico and equity interests in the reorganised company; and implement a proposed settlement of certain estate claims and claims related to the purported release of certain guarantees of the Senior Notes issued by NII Capital that were scheduled to mature in 2016 and 2019. The creditors have also agreed to provide USD350 million in post-petition financing to fund the company until it completes the sale of its operations in Mexico.