Broadview Networks has emerged from its short Chapter 11 bankruptcy.
The New York-based competitive service provider said on Wednesday it did not sell any assets, close any offices or impair service levels during the brief restructuring, which began in late August. It also said suppliers and employees were paid in full. Broadview also told Channel Partners via email that agents were paid in full and on time during the reorganization. Indeed, Broadview executives had stated in June that the proceedings would not hurt agents.
Broadview did say it has reduced its outstanding senior notes by 50 percent, from $300 million to $150 million, matching previous projections. Those notes come due in five years. Broadview further said on Wednesday its annual interest expense has been cut by about $18 million – that's $1 million more than forecast three months ago. The company also said it has access to free cash flow that will be used in part for working capital and "growth opportunities;" Broadview did not say how much free cash flow is involved. Next, Broadview said it has an outstanding balance of $13.9 million on a $25 million credit agreement. Finally, Broadview said it now has a new board of directors, but did not name the members.
“We are a stronger company," Michael K. Robinson, president and CEO of Broadview Networks, said in a press release. "The prompt approval of the plan validates all of the hard work and cooperation of our employees, stakeholders, customers and trading partners over the past several months."
Robinson said the next step is to continue making Broadview into a cloud products and services provider. The company founded itself as a traditional CLEC in 1996 and racked up millions in debt over the years. As a result, this past summer, Broadview warned it would have to file Chapter 11 if it could not refinance its $300 million in debt, which was due Sept. 1. Broadview could not secure new financing by that date, so it filed a prepackaged bankruptcy on Aug. 22.