Otelco Files for Chapter 11 Bankruptcy

Otelco

announced today that on March 24, 2013, the Company filed voluntary petitions for reorganization under chapter 11 of the U.S. Bankruptcy Code in the U.S. Bankruptcy Court for the District of Delaware. Otelco filed for chapter 11 in order to implement its “pre-packaged” financial restructuring plan – a plan that already has been accepted by 100% of the Company's senior lenders, as well as holders of over 96% in dollar amount of Otelco's senior subordinated notes who cast ballots. Otelco's restructuring plan will strengthen the Company by deleveraging its balance sheet and reducing its overall indebtedness by approximately $135 million.