Otelco (OTT) has made a "prepackaged" filing for Chapter 11 three months after a vital...

|By:, SA News Editor

Otelco (OTT) has made a "prepackaged" filing for Chapter 11 three months after a vital revenue-generating wholesale voice contract with Time Warner expired. The telecom services provider's income has also been hit by an FCC order in late 2011 over access rates. Otelco's creditors have agreed to a plan that will cut Otelco's debt in half to $135M, with subordinated debt holders receiving 92.5% of its Class A shares.