Microcell Telecommunications' bank debt was a touch stronger last week as the company received both creditor and court approval to pursue its plan of reorganization. A $5 million piece of the bank debt traded at 71 early in the week and LoanX had the "B" tranche quoted at 70 1/3- 72 by the end of the week. Last month, Mircocell's bank debt traded as high as 77-79 before settling down in the 69-71 context when buying pressure subsided.
Last Monday, the plan was approved by the company's creditors. Secured creditors representing 93% of the secured claims endorsed the plan and 100% of the unsecured creditors signed on. On Tuesday, the plan was approved by the Superior Court of the Province of Quebec, with implementation scheduled for late April. The plan is designed to reduce the company's debt by C$1.7 billion
Once the plan of reorganization is implemented, a new board of directors will be installed. One of the members of the board will be Paul McFarlane, a retired senior v.p. of CIBC World Markets special loans group. McFarlane was a nominee of the secured creditors, noted Thane Fotoboulos, Microcell's director of investor relations.