NEW YORK, May 28, 2003 (PRIMEZONE) -- As part of a massive restructuring which concluded in April, 2003, AT&T Canada was required by the Ontario Superior Court and pursuant to the CCAA to seek formal approval from a multitude of Affected Creditors for their Plan of Reorganization. Georgeson Shareholder (GS) was retained by AT&T Canada to help them identify those Affected Creditors, in particular public noteholders, and gather the necessary approval in time for the meeting.
The transaction proved to be more complex than most given the short solicitation time frame, the large number of debt holders and a two part vote requirement to approve AT&T Canada's Plan. (The Plan required approval by a majority in number of the Affected Creditors and at least 66 2/3 in value of the voting Claims represented at the meeting.) In just under four weeks, GS identified the public noteholders, distributed Plan and information circulars and provided inbound and outbound telephone support to properly communicate the deal to investors.
One of the most difficult and crucial aspects of any debt holder solicitation starts at the beginning - identifying the owners. Unlike equity issues, which have greater ownership visibility, identifying debt holders often requires getting behind layers of custodial banks and reaching the proper owner to solicit. Preliminary indications on the AT&T Canada restructuring suggested only 1,300 noteholders were involved. However, through the use of substantial international contacts and proprietary data, comprising both institutional and retail holders, GS uncovered and identified nearly 12,000 noteholders at the conclusion of the solicitation period. This success was a key factor in ultimately obtaining approval.
Many reorganizations are often delayed or even fail because the proper resources are never utilized to execute this part of the transaction. Edward Sellers, partner with Osler, Hoskin & Harcourt LLP commented, "So much time and effort is put into developing and negotiating a restructuring Plan that people can lose sight of the voting process. This can be a costly mistake jeopardizing the likelihood of success."
Upon proper identification, GS orchestrated a focused and timely solicitation to obtain the required vote. In addition to a comprehensive outbound information campaign to U.S. and Canadian institutional owners, GS provided assistance on the most minute details, such as follow-up and correction of defective ballots. "The guidance and execution GS provided gave us great confidence and contributed to the approval of our restructuring," said David Lazzarato, Chief Financial Officer of AT&T Canada.
For more information on Georgeson Shareholder and our restructuring and bankruptcy services, visit our website http://www.georgesonshareholder.com/