Broadstripe plan changes, DIP loan termination date extension approved

By Caroline Salls

Pittsburgh, Jan. 6 - Broadstripe, LLC received court approval to make "non-material" modifications to its plan of reorganization to make the plan's treatment of executory contracts and unexpired leases consistent with the confirmation order, according to a Friday filing with the U.S. Bankruptcy Court for the District of Delaware.

Specifically, the company said in the motion that the changes are designed to clarify that the plan's effective date is the intended date for rejection of executory contracts and unexpired leases, not its confirmation date.

According to the motion, rejection before the plan effective date would leave Broadstripe without contracts and leases that are crucial to its operations.

As previously reported, the plan was confirmed on Dec. 12.

In addition, Broadstripe obtained court approval to extend the termination date of its debtor-in-possession financing, according to a separate Friday court filing.

Specifically, the termination date was extended to the earlier of Jan. 3, unless extended by the lenders, and the effective date of a Chapter 11 plan or the closing of an asset sale.

The facility was previously scheduled to expire on Dec. 20.

The company will pay a $2,500 amendment fee.

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

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