The continued flat-line economy was apparently too much of a test for
test-system provider Acterna Corp.
The Germantown, Md.-based provider of communications-test equipment for the
cable and telecommunications industries filed for Chapter 11 bankruptcy
protection Tuesday in the U.S. Bankruptcy Court's southern New York
district.
To maintain operations through the reorganization process, the company has
arranged for $30 million in debtor-in-possession financing provided by a cadre
of banks, including J.P. Morgan Chase & Co. and General Electric Capital
Corp.
The bankruptcy also applies only to Acterna's U.S. subsidiaries.
Acterna's proposed restructuring plan includes cutting more than $750 million
in debt -- equaling about 78 percent of its total debt -- and cutting interest
expenses at least $45 million.
