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Goodman Networks Prepackaged Bankruptcy

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Goodman Networks (f/k/a Multiband) and two affiliated Debtors filed for Chapter 11 protection with the U.S. Bankruptcy Court in the Southern District of Texas, lead case number 17-31575. The Company, which provides end-to-end network infrastructure and professional services to the telecommunications industry, is represented by Stephen M. Pezanosky of Haynes and Boone.

Concurrent with its Chapter 11 petition, the Company also filed a Joint Prepackaged Chapter 11 Plan of Reorganization and related Disclosure Statement.

The Disclosure Statement notes, “The Plan provides, among other things, that: in exchange for the Company’s 12.125% senior secured notes due 2018 (the ‘Secured Notes,’ and such underlying claims, the ‘Secured Notes Claims’), all Holders of Secured Notes Claims shall receive their pro rata share of: (1) $25.0 million in cash; (2) an aggregate principal amount of $112.5 million of new 8.0% senior secured notes due 2022 (the ‘New Secured Notes’); (3) new payment-in-kind preferred stock in reorganized Goodman (‘Reorganized Goodman’) having an initial liquidation value of $80.0 million (such payment-in-kind preferred stock, the ‘New PIK Preferred Stock’); and (4) shares of new common stock in Reorganized Goodman (the ‘New Common Stock’) representing 42 percent of the common stock of Reorganized Goodman on the Effective Date, after accounting for the issuance and distribution of the Goodman MBE Group Common Stock and the continuation of the Interests in Goodman (the ‘Noteholder Common Stock’), subject to further pro rata economic dilution pursuant to the Management Incentive Plan.”

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