Focal Communications Corp., a telecommunications provider to businesses and communications companies, announced Tuesday it had emerged from bankruptcy.
Focal abolished $375 million in debt, leaving senior secured noteholders with a majority stake in a company operating in 23 markets stretching from Boston to Seattle.
The company now is privately held.
“With the reorganization complete we intend to continue to grow our customer base and revenue per customer, as well as improve operational efficiencies,” said Kathleen Perone, president and CEO of Focal.
The company said it plans to improve gross margins by increasing revenue per line by adding services, such long distance and conference calling.
Focal posted $7.3 million in earnings before interest, taxes, depreciation and amortization and a net loss applicable to shareholders of $15.1 million, or $3.03 per share, for the first quarter.
According to the April 30 disclosure statement, Focal owed its bank group $78 million. Focal paid the bank group $15 million as part of its prenegotiated Chapter 11 bankruptcy filing.
The company filed for bankruptcy court protection in December, listing $561 million in total liabilities and stockholder equity at the end of the third quarter 2002.
