Look confident plan will be accepted by creditors at Dec. 14 meeting

Management at Look Communications Inc. is confident that its plan to emerge from bankruptcy protection will be accepted by the majority of its creditors at a meeting on Dec. 14. Getting the requisite number of creditors to vote in favour of the plan has been bolstered by the fact that the company’s two primary lenders – BCE Inc. and Telesystem Ltd. (RoW, Sept. 4/01) – have thrown their full support behind management. According to the plan, secured and unsecured creditors would gain control of 95 per cent of the company, while current shareholders would only retain a five per cent stake in the firm (RoW Update, Nov. 19/01). While a rubber stamp on the deal isn’t guaranteed, representatives for the Milton ON-based wireless cable and Internet service provider say that discussions with current secured and unsecured creditors are proceeding well. Based on those talks, management believes that the plan will be passed, company spokesperson Alex Radmanovic tells Report on Wireless. But before Look can emerge from creditor protection under the Companies’ Creditors Arrangement Act (CCAA), it needs certain minimums with respect to shares held and number of creditors to vote in favour of the plan. Radmanovic says creditors holding two-thirds of the shares and 50 per cent plus one of the number of creditors have to approve the plan before Look can take the next step in emerging from CCAA protection. Radmanovic doesn’t expect any bumps in the road, but admits that "until it’s done, it ain’t done." If everything goes according to plan, Look hopes to officially emerge from creditor protection next February. Going forward, however, management seems to be confident that its plan of focusing on migrating dial-up customers to high-speed Internet access for the small- and medium-sized enterprise market and on the multiple unit dwelling market for its television distribution operations will be successful. While growing the company organically may prove to be difficult in this competitive market, the ownership structure gives Look’s management a sense of stability to take the necessary steps, says Radmanovic. BCE and Telesystem "have agreed that they would vote with management on any issue that needs to be brought before the shareholders," Radmanovic explains. "The management of Look has carte blanche to do what they’ve got to do." For more on Look’s new business plan, see the Dec. 6/01 edition of RoW affiliate publication, Canadian Communications Reports.

Look confident plan will be accepted by creditors at Dec. 14 meeting

News | 12/11/2001 5:00 am EST

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