A piece of 360networks was believed to have traded around the 23-23 1/2 level last week after the company received approval for its Canadian plan of reorganization. Chris Mueller, treasurer, said the company's secured creditors, which hold $1.2 billion in debt, should expect to receive $135 million in cash, $215 million in new notes and an 80% stake in the reorganized company. A confirmation hearing for the U.S. restructuring plan is scheduled for Oct. 1.
"The face value of the package is higher than where the bank debt is trading," Mueller said, declining to speculate on where the market would value the paper. 360networks expects to emerge from bankruptcy in early October, and he noted that it would be interesting to see where the market valued the bank debt then.