April 10, 2002 — (WEB HOST INDUSTRY REVIEW) — Globix Corp., a Web hosting and network services provider, today announced that the United States Bankruptcy Court confirmed the joint pre-packaged Plan of Reorganization filed by Globix and certain subsidiaries. The company plans to emerge from bankruptcy later this month.
Calling for bondholders to exchange Globix’s (globix.com) outstanding $600 million principal amount of senior notes for their pro rata share of $120 million in new senior secured notes, the company is also calling for about 85 percent of the reorganized company’s common stock. Current holders of the preferred stock will receive approximately 14 percent of the new common stock. And all common stock holders will receive approximately 1 percent of the new common stock. Under the plan, all currently existing securities of the Company will be cancelled with new shares to be issued The company’s existing stock will be canceled.
Globix filed for bankruptcy on March 4, to pay its employees, trade, and certain other creditors in full and on time.
?The support we have received from our bondholders and preferred shareholders has allowed us to move with relative ease through this process,? said Peter Herzig, Chief Executive Officer of Globix.
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