Globix Emerges from Chapter 11 Bankruptcy
NEW YORK – April 26, 2002
NEW YORK – April 26, 2002 – Globix Corporation (OTCBB: GBIXQ), a leading provider of advanced Internet hosting, network and applications solutions for business, emerged from Chapter 11 bankruptcy protection after the United States Bankruptcy Court confirmed its plan of reorganization, and all conditions necessary for the plan to become effective were satisfied or waived. Now benefiting from a sound balance sheet and a substantial cash position, Globix believes that it has strengthened the platform from which to promote its capabilities as a premium provider of advanced Internet hosting, network and applications solutions for business via secure state-of-the-art Internet Data Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals.Peter Herzig, Chief Executive Officer, said, ‘Our mission remains the same – to focus on the high level of availability and service delivery that has been the foundation of our business. We believe that there is a strong opportunity for increased revenue growth in the US and UK web-hosting marketplaces. Our existing customers, which include over 2,000 businesses in industries ranging from advertising to financial services, media, retail, healthcare and technology, continue to remain confident in our commitment to quality of service and a competitive product offering.’
Edward Zecchini, CTO of HealthMarket, commented: ‘For the Past two years we have had solid service, support and personal attention from Globix. We’ve looked around, there is no doubt Globix is the Rolls Royce of the hosting Business.’
Navarrow Wright of BET Interactive also offered its support to the company as it emerged from the bankruptcy process, ‘We have been pleased by the way that Globix has handled the Chapter 11 process and communicated with us throughout. The excellent service we have always received from Globix has remained unchanged during this period. Using Globix services has allowed us to remain a leaner business in our own highly competitive marketplace.’
Through the financial restructuring, the Company’s bondholders exchanged the current $600,000,000 indebtedness for $120,000,000 in senior secured notes, due in 2008, with interest at 11% payable in kind for up to four years. This will relieve the Company of approximately $75 million in annual cash interest expense on the existing notes. There will be no cash interest payable on the new senior secured notes for up to four years.
The new Board of Directors of the reorganized Company will meet for the first time on Monday, April 29th.
Globix is a leading provider of advanced Internet hosting, network and applications solutions for business. Globix delivers services via its secure state-of-the-art Internet DATA Centers, its high-performance global backbone and content delivery network, and its world-class technical professionals. Globix provides businesses with cutting-edge Internet resources and the ability to deploy, manage and scale mission-critical Internet operations for optimum performance and cost efficiency.