Pac-West would go private to emerge from bankruptcy

STOCKTON
August 7, 2007 3:59am

When it exits from its Chapter 11 bankruptcy protection, Central Valley-based Pac-West Telecommunications Inc. will go private, owned by affiliates of existing investor Columbia Ventures Corp., the firm says.

Pac-West, which has been listed on the Pink Sheets market under the symbol PACW.PK, is a wholesale seller of advanced telecommunications services.

Still needed is Bankruptcy Court approval for the proposal.

Columbia Ventures has provided debtor-in-possession financing through the reorganization process to the Stockton company.

"We are pleased to have reached this important milestone in Pac-West's reorganization and we look forward to obtaining Bankruptcy Court approval to present this plan and disclosure statement to our creditors,’ says Michael Katzenstein, Pac-West's chief restructuring officer.

“Upon consummation of the plan, Pac-West's balance sheet will be significantly stronger. Its return to financial health will enable it to compete more effectively in the marketplace, continue to provide excellent customer service and introduce innovative new services," he says.

Wally Griffin, Pac-West's chairman, president and chief executive officer, says the plan is consistent with the company's recently-announced business plan to grow in its western US markets. In July, Pac-West announced plans to exit the 24 states and the District of Columbia that are now served by its eastern network and to concentrate on states served by its western network.