kareem
03-11-2003, Mon 4:42 PM
NEW YORK (Dow Jones)--Redback Networks Inc. (RBAK) filed for Chapter 11 bankruptcy protection Monday with a prepackaged reorganization plan which calls for the elimination of substantially all of its debt.
More than 99% of creditors who voted approved the plan prior to the filing, Kevin DeNuccio, Redback's president and chief executive, told Dow Jones Newswires. DeNuccio expects it to be "business as usual" at the telecommunications equipment-maker and said the company should emerge from Chapter 11 protection within 45 to 60 days.
"We've done everything we could outside of the court process, including forming a creditors committee and conducting a full solicitation" of creditors, DeNuccio said. "We figure if we're going to clean up the balance sheet, this is the best way. The creditors agreed."
Redback tried to win approval of a plan without filing for Chapter 11 protection through a shareholder vote last week but was unable to secure a quorum, the CEO said.
More than 99% of creditors who voted approved the plan prior to the filing, Kevin DeNuccio, Redback's president and chief executive, told Dow Jones Newswires. DeNuccio expects it to be "business as usual" at the telecommunications equipment-maker and said the company should emerge from Chapter 11 protection within 45 to 60 days.
"We've done everything we could outside of the court process, including forming a creditors committee and conducting a full solicitation" of creditors, DeNuccio said. "We figure if we're going to clean up the balance sheet, this is the best way. The creditors agreed."
Redback tried to win approval of a plan without filing for Chapter 11 protection through a shareholder vote last week but was unable to secure a quorum, the CEO said.