Ciena Capital files reorganization plan; lenders to receive new stock

By Caroline Salls

Pittsburgh, March 31 - Ciena Capital LLC filed a plan of reorganization Tuesday with the U.S. Bankruptcy Court for the Southern District of New York.

Under the plan, the company's pre-bankruptcy secured lenders will receive a restructured credit facility and 100% of the new common stock in the reorganized company.

Treatment of creditors will include:

• Holders of administrative claims, priority tax claims and priority non-tax claims will be paid in full in cash;

• Holders of pre-bankruptcy secured lender claims will receive a share of a restructured credit facility and 100% of the interests in the reorganized company;

• Holders of other secured claims will either have their claims reinstated, be paid in full in cash or receive the collateral securing the claim;

• Holders of unsecured claims will either receive a portion of a settlement fund if they exercise a release opt-out election or cash equal to 10% of their share of the settlement fund if they do not exercise the opt-out election;

• Holders of subordinated claims will receive no distribution; and

• Existing interests will be cancelled and extinguished.

Ciena is a New York-based portfolio company for Allied Capital, a business development company that invests long-term debt and equity capital in middle market businesses. The company filed for bankruptcy on Sept. 30, 2008. Its Chapter 11 case number is 08-13783.

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