By Deborah Schofield, 5 February 2001 17:20
NEWS Fund management group Highland Capital Management, which is owed $26m, lodged a petition of involuntary bankruptcy against Bridge last Thursday, prompting emergency meetings between company executives, investors and advisors. Yesterday's decision by Bridge, to file for a prepackaged plan of reorganisation under Chapter 11 of the United States Bankruptcy Code, allows the company to continue operations under observation from a court-appointed official, and to make good on outstanding debts. Bridge has pledged to reduce its debt by $700m. Senior financial creditors are to convert an outstanding $340m into equity. It is expected that $400m will be raised through sales of non-core assets over time. The company's largest shareholder, Welsh, Carson, Anderson & Stowe, will further inject $150m of cash into the company. Bridge anticipates the restructuring to be completed towards the end of March and that day-to-day activities of its business will be unaffected during this period.
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