The first pre-packaged in-and-out bankruptcy filing by Memorex Telex NV failed to solve the company’s problems, so it plans to try another one, adding that it has received substantial support from each of its three requisite creditor groups; under the plan, about $850m of its $950m in long term debt will be converted to equity, and annual interest expense will be reduced to $85m; senior noteholders will receive 65% of the new common stock, while Tranche A lenders will receive 20%, Tranche B lenders will receive 15% of the common; current common shareholders will receive warrants to buy 4% of the new common at a strike price of $14 per share, which is more than the likely initial trading price; the remaining $100m debt will be converted into a new five-year term loan; trade creditors will continue to be paid in full during the process.