Broadstripe debtors eye settlement with committee, Grand Central

By Lisa Kerner

Charlotte, N.C., Dec. 7 - Broadstripe, LLC debtors asked the court for an order approving a compromise among the debtors, the official committee of unsecured creditors and Grand Central Asset Trust - HLD Series, according to an emergency motion filed Wednesday with the U.S. Bankruptcy Court for the District of Delaware.

A Dec. 8 hearing date is requested.

Grand Central, which holds a class 3 claim in the amount of about $20 million or about two-thirds of all class 3 claims, has received extensions with respect to voting on the debtors' first modified plan of reorganization. All other impaired voting classes have voted to accept the plan.

Resolution of this dispute is needed to determine whether the debtors must resort to cramdown to have their plan confirmed at the hearing, also on Dec. 8, the filing said.

Under the settlement, Grand Central's class 3 claim will be reduced and allowed in the amount of $9 million.

Once the settlement is approved, Grand Central shall be deemed to have voted its class 2 first-lien note claim and its class 3 non-Highland second-lien note claim to accept the plan as modified by the settlement agreement.

Broadstripe is a St. Louis provider of integrated video, broadband and home phone services. The company filed for bankruptcy on Jan. 2, 2009. Its Chapter 11 case number is 09-10006.

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