FiberTower Corporation to Eliminate Long-term Debt Through Chapter 11 Re-organization

Jul 17, 2012, 18:10 ET from FiberTower Corporation

SAN FRANCISCO, July 17, 2012 /PRNewswire/ -- FiberTower Corporation (OTC: FTWRQ), and certain of its wholly-owned subsidiaries: FiberTower Network Services Corp., FiberTower Licensing Corp., and FiberTower Spectrum Holdings, LLC (collectively, the "Company" or "FiberTower") filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code.  The filing, which was made in U.S. Bankruptcy Court for the Northern District of Texas, Fort Worth division, includes a proposed plan of reorganization for FiberTower. 

The proposed plan of reorganization will eliminate the Company's long-term debt enabling the Company to emerge from bankruptcy as a stronger business.  The proposed plan reorganizes FiberTower around its restructured legacy backhaul network as well as two other business lines - - spectrum services and carrier services.  FiberTower has taken these steps after evaluating various strategic and financial alternatives and determining that reorganizing under Chapter 11 is in the best long-term interests of the Company, its customers, employees, creditors, business partners and other stakeholders.  The proposed plan of reorganization is supported by an ad hoc group of holders of the Company's secured debt (the "Ad Hoc Group") pursuant to a plan support agreement. 

During the Chapter 11 process, the Company intends to run "business as usual" and will: (i) operate its backhaul network; (ii) pay "post-petition" vendors, suppliers and other business partners for goods and services provided; and (iii) pay employees' wages and salaries and maintain current medical, dental, life insurance, disability and other benefits.   The Company has reached a consensual agreement with the Ad Hoc Group to use cash collateral.  In addition, the Company filed a variety of "first day motions" to support its employees, customers, vendors and other stakeholders; to maintain existing cash management programs; to retain legal and other professionals; and to support the Company's reorganization case. 

The Company is issuing unaudited summarized financial statements for the periods ending December 31, 2011 and June 30, 2012.  Those summarized financial statements are included at the end of this press release.

Documents related to the filing may be found at: www.bmcgroup.com/fibertower.

Forward-Looking Statements
This news release includes "forward-looking'" statements, as that term is defined in the Private Securities Litigation Reform Act of 1995 or by the Securities and Exchange Commission, or SEC, in its rules, regulations and releases.  Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts.  These include statements regarding, among other things, our ability to emerge from bankruptcy as a reorganized company, our future financial performance and results of operations including our financial and business prospects, the deployment of our services, capital requirements, financing prospects, planned capital expenditures, anticipated customer growth, expansion plans, and anticipated cash balances.

There are many risks, uncertainties and other factors that can prevent the achievement of goals or cause results to differ materially from those expressed or implied by these forward-looking statements. These include, among other things, negative cash flows and operating and net losses, additional liquidity requirements, potential loss of significant customers, downturns in the wireless communication industry, regulatory costs and restrictions, potential loss of FCC licenses, equipment supply disruptions and cost increases, competition from alternative backhaul service providers and technologies, along with those risk factors described in the company's Annual Reports on Form 10-K and Quarterly Reports on Form 10-Q, as filed with the SEC.

 

FiberTower Corporation 







Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012 

Income Statements 
















 FY 2011 


 June 2012 YTD 



 Revenue 







 Revenue w/o ETLs 


$ 77,386,864


$        33,384,266



 ETLs 


19,898,921


348,767










 Total 


97,285,785


33,733,033










 Cost of Service 







 Rent 


22,007,102


11,065,073



 FSP costs 


19,470,693


8,232,788



 Impairments (1) 


346,000,250


1,491,251



 Other COS 


6,071,868


1,676,687










 Total COS 


393,549,913


22,465,799










 SG & A 







 fSG&A 


24,935,125


2,128,550



 Corporate SG&A 


23,397,346


7,904,526



 Retention 


-


1,526,771



 Stock Comp 


3,216,017


247,132










 Total SG&A 


51,548,488


11,806,979










 EBITDA 







 Adjusted fEBITDA 


24,935,125


9,990,843



 Adjusted EBITDA 


3,042,934


2,210,065



 EBITDA margin 


3.1%


6.6%
























 (1) Includes fair value write-down of network assets and spectrum in 2011 



 

 FiberTower Corporation 





 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012 

 Reconciliation to Net Income 
















FY 2011


June 2012 YTD








 Adjusted EBITDA 


$        3,042,934


$        2,210,065









Stock-based compensation


3,216,017


247,132


Depreciation & amortization


25,352,525


4,963,681


Interest income


(97,953)


(109,512)


Interest expense


14,119,315


7,464,838


Impairment/USAC


346,534,168


1,491,251


Restructuring Charge


1,492,359


149,708


Income Tax Adjustment


(65,565,562)


153,000


Early termination payments


(19,898,921)


(348,767)


Gain/(Loss) on disposal of assets


28,629


(216,019)









Total adjustments


305,180,577


13,795,312








Net Income


$   (302,137,642)


$     (11,585,247)








Adjusted Field EBITDA


$      24,935,125


$        9,990,843


Corporate SG&A


23,397,346


7,904,526


Stock-based compensation


3,216,017


247,132


Depreciation & amortization


25,352,525


4,963,681


Interest income


(97,953)


(109,512)


Interest expense


14,119,315


7,464,838


Impairment/USAC


346,534,168


1,491,251


Bad debt expense


(12,798)


25,959


Income Tax Adjustment


(65,565,562)


153,000


Early termination payments


(19,898,921)


(348,767)


Gain/(Loss) on disposal of assets


28,629


(216,019)









Total adjustments


327,072,767


21,576,089








Net Income


$   (302,137,642)


$     (11,585,247)

 

 FiberTower Corporation 





 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012 

 Balance Sheets 






















  FY 2011 


 June 2012 YTD 

 Assets 





 Current assets: 





 Cash and cash equivalents 


$ 26,122,765


$          24,406,664

 Accounts receivable 


8,751,635


8,106,081

 Prepaid expenses and other 


1,822,199


1,609,052






 Total current assets 


36,696,599


34,121,797






 Total fixed assets 


45,026,352


38,785,999

 Restricted cash equivalents 


6,342,011


4,456,177

 FCC Spectrum Licenses 


106,630,000


106,630,000

 Deposits and other long-term assets 


4,689,870


4,113,958






 Total assets 


$199,384,832


$188,107,931






 Liabilities 





 Current liabilities: 





 Accounts payable and accrued liabilities 


$9,686,726


$5,015,876

 Accrued interest payable 


3,551,109


4,951,757

 Capital lease Obligation - ST 


1,213,621


1,143,286






 Total current liabilities 


14,451,457


11,110,920






 Long-term liabilities: 





 Long-term debt 


172,296,441


176,178,844

 Deferred tax liability 


6,138,270


6,138,270

 Other long-term liabilities 


18,156,525


17,675,874






 Total long-term liabilities 


196,591,237


199,992,988






 Total stockholders' equity 


(11,657,862)


(22,995,977)

 Total liabilities and equity 


$199,384,832


$188,107,931

 

 FiberTower Corporation 





 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012 

 Statement of Cashflows 

















 FY 2011 


 June 2012 YTD 

 Operating Activities 





 Net income/(loss) 


($302,137,642)


($11,585,247)

 Depreciation & amortization 


(97,799,183)


4,880,373

 Accretion expense 


8,215,546


3,254,318

 Impairment/USAC 


527,399,168


1,491,251

 Stock-based compensation 


3,216,017


247,132

 Debt related amortization 




85,778

 Deferred tax benefit 


(65,565,562)


-

 Working capital/other 


(837,745)


(1,994,269)






 Net operating cashflow 


72,490,599


(3,620,664)






 Investing Activities 





 Change in restricted cash 


3,648,572


1,885,834

 Property, plant & equipment 


(71,247,578)


18,729






 Net investing cashflows 


(67,599,006)


1,904,563






 Financing Activities 





 Exercise of stock options & warrants 


(82,479)


-






 Net financing cashflow 


(82,479)


-






 Net change in cash and equivalents 


4,809,114


(1,716,101)

 Beginning cash 


21,313,651


26,122,765

 Ending cash 


$   26,122,765


$     24,406,664

 

 FiberTower Corporation 





 Financial Statements for the Periods Ending December 31, 2011 & June 30, 2012 

 Debt Summary 
















 FY 2011 


 June 2012 YTD 



 GAAP 







2012 Converts


$36,220,209


$37,046,442



2016 Sr Notes


136,076,232


139,132,402



Total


$172,296,441


$176,178,844










 Contract Amount 







2012 Converts


$36,232,902


$37,051,945



2016 Sr Notes


124,215,075


127,941,527



Total


$160,447,977


$164,993,472










 Accrued Interest 







2012 Converts


$1,698,234


$3,043,296



2016 Sr Notes


1,852,875


1,908,461



Total


$3,551,109


$4,951,757



 

SOURCE FiberTower Corporation