Protection One Inc. announces it has completed its out-of-
court debt restructuring. The company was able to reduce
its obligations to its credit facility, Quadrangle Group,
and majority equity holders by $120 million in exchange for
16 million shares of common stock.
Quadrangle now owns 97 percent of the company’s outstanding
stock.
Further reducing Pro One’s liability to Quadrangle Group
was a $3 million cash payment and extension of the maturity
date of the credit facility. The company’s current debt is
now approximately $383 million, down from more than $500
million.
Last March, Protection One warned shareholders it might
have to file for bankruptcy protection, but avoided it
after reaching a debt restructuring deal HREF=t_ci_newsView.cfm?nid=1962>last November.
In connection with the move on Feb. 9, the company’s
stockholders announced a 1:50 reverse stock split and
adoption of a stock option plan. Protection One’s stock
will begin trading on the OTCBB under the new symbol HREF= t_stock_info.cfm?symb=PONN.OB>”PONN.OB.”
