Otelco Inc., a local exchange carrier based in Oneonta, Ala., filed for chapter 11 protection after losing a contract with Time Warner Cable Inc., which resulted in lower revenue, Bloomberg News reported yesterday. Otelco listed assets of $168 million and debt of $310 million in the chapter 11 documents filed on Saturday. Otelco won support of creditors for a debt restructuring plan prior to the filing, the company said. Under the proposal, which must be approved by the bankruptcy court, Otelco will cut its long-term debt by half to $135 million from $271 million with secured creditors swapping current debt for new debt and shares in the company. Subordinated note holders will receive 92.5 percent of Class A shares in the company, Otelco said.
