Instructions: Arch Wireless, Inc. Restructuring Debt and Liabilities
The case text is in Book, Gilson, 2010 Creating value through corporate restructuring Case studies in bankruptcies, buyouts, and breakups (pages 280-310). The case specifies six questions, focus on Question 4 (Page 294). Assume a substantial consolidation is approved.
Q4: Based on your estimate of Arch’s enterprise value, design a Chapter 11 plan of reorganization for Arch, assuming you are the debtor. Your plan should propose specific distributions of new securities and/or cash to Arch’s various claimholders. Assume that $300 million of debt and new common stock are available to be distributed under the plan.