Communications Corporation of America Consummates Reorganization Plan

Communications Corporation of America Consummates Reorganization Plan

LAFAYETTE, La., Oct. 4 /PRNewswire/ -- Communications Corporation of America ("CCA") announced today that the Company consummated its First Amended Joint Plan of Reorganization (the "CCA Plan"). The CCA Plan was confirmed by the United States Bankruptcy Court for the Western District of Louisiana on October 1, 2007.

CCA's founders and vice chairmen, Thomas R. Galloway and D. Wayne Elmore, stated, "CCA's return to sound financial footing is good news for the many communities we serve, and we look forward to continuing our long tradition of civic partnership. We are very grateful to all of the employees and everyone who worked very diligently to complete the restructuring, which results in a better future."

Concurrent with the consummation of the CCA Plan, White Knight Holdings ("White Knight") also consummated its First Amended Joint Plan of Reorganization (the "White Knight Plan"), which was confirmed by the United States Bankruptcy Court for the Western District of Louisiana on October 1, 2007. White Knight owns and operates television stations which are operated in conjunction with stations that CCA owns in the same markets.

Under the CCA Plan and the White Knight Plan, each company's general unsecured trade creditors received a full recovery on their pre-petition or agreed-upon claims.

Former holders of CCA's pre-petition first lien secured credit facility, representing an aggregate of approximately $265 million in total claims, have converted their debt into 100% of CCA's new common equity distributed pursuant to the CCA Plan and a new $150 million senior secured term loan.

As a restructured company, CCA has approximately $160 million in debt, representing a sharp reduction from CCA's over $425 million in pre-emergence debt.

Steve Pruett, CCA's Chief Executive Officer, said, "We are very pleased to conclude our reorganization and move forward as a much stronger company, with a healthy balance sheet and significantly less debt. We also are excited that CCA has strong financial partners who are supportive of our plans to invest in and grow our local television businesses, as well as to seek new station and market opportunities."

Affiliates of Silver Point Capital have become the majority shareholder of CCA and affiliates of Highland Capital Management have become a minority shareholder. A spokesperson for Silver Point Capital said, "We and Highland are very pleased that we were able to help CCA and White Knight revive and consummate their reorganizations. CCA and White Knight have vibrant futures, and we are excited to move forward as partners, including providing CCA's management with strategic support as they build on their strong foundation to capture new growth opportunities."

CCA was advised during its restructuring by the law firm of Heller, Draper, Hayden, Patrick, & Horn, L.L.C. White Knight was advised by the law firm of Jones, Walker, Waechter, Poitevent, Carrere & Denegre, L.L.P. Silver Point was advised by the law firm of Milbank, Tweed, Hadley & McCloy LLP.

Communications Corporation of America owns and operates, or provides programming, sales and other services to 23 stations in Louisiana, Texas and Indiana. Such stations are affiliated with the Fox Network, NBC, CBS, My Network and The CW Network.

White Knight Holdings owns eight stations in Louisiana and Texas. Such stations are affiliated with the Fox Network, NBC and My Network.

   Contact:   Steve Pruett, Chief Executive Officer   (337) 237-1142  

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Source: Communications Corporation of America

CONTACT: Steve Pruett, Chief Executive Officer of Communications
Corporation of America, +1-337-237-1142

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Profile: International Entertainment