(MENAFN) Otelco Inc announced that it has filed for bankruptcy, after losing a contract from Time Warner Cable Inc, reported Reuters.
The company, which provides telephone, internet, broadband and television services in Maine, New Hampshire in addition to other areas, said in April that Time Warner would not renew a wholesale voice deal that contributes with 12.3 percent to the firm's total revenue of USD74.5 million for the 9 months to September 30, 2012.
It added that the deal's period ended on the last day of 2012.
It noted that it has reached a deal with its senior secured lenders in February under which its long-term debt would be slashed from a current balance of nearly USD271 million as of September 30, 2012, to USD142 million.
It is worth noting that holders of subordinated notes will hold almost 92.5 percent of the total equity interests in reorganized Otelco after the restructuring, which still need to get court's approval.
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