Tricom opens Chapter 11 around telecom debt overhang
Tricom, S.A., TCN Dominicana, S.A., and Tricom USA, Inc. filed Chapter 11 in the Southern District of New York, with Tricom’s petition dated February 29, 2008 source filing. The debtors operated a Dominican Republic-centered communications platform spanning international long distance, domestic telephony, mobile service, cable television, data transmission, and internet access, serving more than 729,000 customers and employing about 1,720 people as of year-end 2007 source filing. The cases were filed against a capital structure that included about $413.2 million of unsecured financial claims and $32.4 million of secured obligations, including $25.5 million held by Credit Suisse, $4.6 million held by GE, and $2.1 million held by Banco del Progreso source filing. Tricom had stopped paying interest on its 11 3/8% senior notes in 2003 and missed the $200 million principal maturity in September 2004, making the case a long-running balance-sheet restructuring rather than an operating-company liquidation source filing.