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.
