Globix Temporarily Postpones Filing Date of Pre-Packaged Reorganization Plan at Request of Informal Committee of Noteholders
NEW YORK – February 21, 2002
NEW YORK – February 21, 2002 – Globix Corporation (NASDAQ: GBIX) announced today that, at the request of an informal committee of noteholders, it has agreed to delay the filing date of its previously announced Chapter 11 petition for a pre-packaged plan of reorganization until the week of February 25.
Globix has received acceptance of its plan of reorganization from holders of its senior notes and preferred stock for a plan of reorganization under Chapter 11 of the U.S. Bankruptcy Code.
The plan was accepted by holders of senior notes representing approximately 97.5% of the $500 million principal amount of senior notes that actually voted and 97% in number of holders that actually voted. In addition, 100% of the preferred hareholders voted to accept the plan. The terms of the plan should not be affected by this short delay. The Company continues to expect to emerge from bankruptcy by the end of March 2002, or as soon as practicable thereafter.
The Company intends to continue operating in Chapter 11 in the ordinary course of business. It intends to seek the necessary relief from the Bankruptcy Court to pay its employees, trade, and certain other creditors in full and on time, regardless of whether such claims arise prior to or after the Chapter 11 filing.
The delay is intended to facilitate discussions begun over the last few days between representatives of the informal committee of noteholders and the landlord of the Company’s Globix House property in London. Globix House is the Company’s principal office in London and also houses a data center. The discussions are focused on the possibility of modifying the Company’s long-term lease and surrendering a significant portion of the premises. Because the terms of any particular modification have not been agreed upon, the full implication of any such modification cannot as of yet be determined.
At present, the Company anticipates that any such modification may not become effective, if at all, prior to the consummation of the plan of reorganization. Additionally, there can be no assurance that these discussions will lead to an agreement with the landlord or that such an agreement, if reached, would prove to be beneficial to the Company.
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.