Exhibit 99.1
NTELOS Takes Another Step Toward Comprehensive Financial Restructuring Plan
-- NTELOS Files Voluntary Petition for Reorganization under Chapter 11 as
Part of Financial Restructuring --
-- Company Continuing to Serve Customers and Conduct Business as Usual --
-- Company Secures Debtor-in-Possession Financing --
WAYNESBORO, VA - March 4, 2003 - NTELOS (NASDAQ: NTLO) today announced that it
has taken another step toward a comprehensive financial restructuring plan that
would significantly reduce the company's debt. To complete development and
implementation of such a restructuring plan, NTELOS and certain of its
subsidiaries filed voluntarily petitions for reorganization under Chapter 11 of
the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the Eastern District
of Virginia. The company has made arrangements for debtor-in-possession
financing during the restructuring process.
The company also said it is in active discussions with its bank group and
bondholders owning a substantial majority of its outstanding senior notes with
respect to its bank financing upon emergence from bankruptcy and the terms of a
new investment by these bondholders in the company upon emergence. The company
also is holding discussions with its bank group and other debtholders toward
development of a definitive plan of reorganization.
NTELOS emphasized that the Chapter 11 filing will not affect the company's
operations, which remain strong and ongoing. The company plans to conduct
business as usual throughout the Chapter 11 process. The company will continue
to focus on providing all of its customers with the highest quality service, and
employees will continue to be paid in the usual manner, with health and other
benefits expected to continue unchanged.
In addition to regular cash flows from operations, the company's ability to meet
ongoing obligations during the Chapter 11 process has been enhanced through a
commitment for $35 million in debtor-in-possession (DIP) financing from Wachovia
Bank. Upon court approval, which is expected shortly, up to $10 million of these
funds will be available immediately, to meet ongoing obligations in connection
with regular business operations, including prompt payment to vendors for goods
and services provided on or after today's filing. The full $35 million DIP
commitment is subject to final court approval, certain state regulatory
approvals and the banks' receiving satisfactory assurances regarding the
bondholders' proposed new investment in the company upon emergence from
bankruptcy.
NTELOS is in active discussions with its bank group to continue providing access
to the $261 million credit facility and to reduce its revolver commitment from
$100 million to $36 million, both at current rates and existing maturities, upon
emergence from bankruptcy. Based on these discussions, the company is optimistic
that it will obtain approval of these terms, subject to, among other things,
final documentation, the company's senior noteholders investing $75 million in
the company upon emergence from bankruptcy and the bank group's reasonable
satisfaction with the final terms of the plan of reorganization.
The company also is engaged in active discussions with the company's senior
noteholders about purchasing an aggregate of $75 million of new 9.0% senior
convertible notes, subject to, among other things, agreement on final
documentation with the bank group, as described above, and senior noteholders'
reasonable satisfaction with the final terms of the plan of reorganization. The
proceeds from this new investment would be used to repay the
debtor-in-possession financing and to pay down the revolver, with the remaining
funds to provide capital to support the company's ongoing operations.
While the company cannot speculate as to what the final terms of a plan of
reorganization might be, the company currently expects that such a plan would
result in a substantial reduction in the company's indebtedness, with conversion
of outstanding notes into all or substantially all of the reorganized NTELOS'
equity, with little or no recovery to current equity holders.
James Quarforth, Chief Executive Officer of NTELOS, said "The Chapter 11 process
remains the best means by which to effect a meaningful restructuring of our
debt, allowing us to continue operating our business as usual while working
toward completion of our proposed financial restructuring plan. We are proud of
our tremendously talented and dedicated employees, who remain totally focused on
serving customers. NTELOS has an outstanding franchise, built on over a hundred
years of service excellence, and solid operations."
"We believe we have made significant progress thus far in negotiations with our
bank group and senior noteholders. We are continuing our discussions with these
and other creditors with the objective of being able expeditiously to reach an
agreement on the financing arrangements described above and the final terms of
the restructuring plan."
NTELOS has filed a number of first-day motions with the Bankruptcy Court,
including, among others, requests to pay employee wages and benefits; honor
pre-petition customer obligations, including warranty and service agreements;
and obtain interim financing authority and maintain cash management programs.
The company expects these motions to be addressed shortly by the Court.
The Company anticipates announcing fourth quarter 2002 and year-end 2002
financial results and 2003 guidance during the week of March 24, 2003 in the
usual press release format.
For more information regarding the company's recent results of operations and
liquidity and capital resources, please refer to the company's Form 10-Q for the
quarter ended September 30, 2002 and the company's Current Reports on Form 8-K
dated February 19, 2003 and November 29, 2002, on file with the SEC.
NTELOS Inc. (NASDAQ: NTLO) is an integrated communications provider with
headquarters in Waynesboro, Virginia. NTELOS provides products and services to
customers in Virginia, West Virginia, Kentucky, Tennessee and North Carolina,
including wireless digital PCS, dial-up Internet access, high-speed DSL
(high-speed Internet access), and local and long distance telephone services.
Detailed information about NTELOS is available online at www.ntelos.com.
This press release and oral statements made from time to time by representatives
of the company may contain "forward-looking statements" concerning the company's
future expectations, financial and operating projections, plans, strategies and
the trading market for its securities, including the company's ability to
finalize the financing arrangements described in this press release, as well as
the terms of a plan of reorganization acceptable to the senior noteholders and
bank group. Forward-looking statements made by the company are based on a number
of assumptions, estimates and projections. These statements are not guarantees
of future performance and involve risks and uncertainties, including those set
forth in documents filed by the company with the Securities and Exchange
Commission, and any significant deviations from these assumptions could cause
actual results, performance or achievements of the company to differ materially
from those expressed or implied by such forward-looking statements. The company
undertakes no obligation to revise or update such forward-looking statements to
reflect current events or circumstances after the date hereof or to reflect the
occurrence of unanticipated events.