BusinessBusiness RecoveryRelief for UK clients as Globix avoids Chapter 11

Relief for UK clients as Globix avoids Chapter 11

Troubled data centre company Globix has survived a Chapter 11 bankruptcy file after a restructure plan was accepted by a US bankruptcy court, the company said on Friday.

The news will come as a relief to its customers of Globix main UK data centre in the City of London and its 2000 customers around the world.

Globix said it now had a ‘sound balance sheet and a substantial cashposition’.

‘Our mission remains the same – to focus on the high level of availability and service delivery that has been the foundation of our business,” said chief executive Peter Herzig.

‘We believe that there is a strong opportunity for increased revenue growth in the US and UK web-hosting marketplaces.’

Through the financial restructuring, the company’s bondholders exchanged thecurrent $600m indebtedness for $120m in senior secured notes, due in 2008, with interest at 11% payable in kind for up to four years.

The new board of directors of the reorganized company will meet for thefirst time today, Herzig confirmed.

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