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The Web-hosting field is littered with companies that have filed for bankruptcy protection but will never be heard from again. Embattled Globix Corp. plans to be different, announcing Jan. 14 a debt restructuring plan backed by some of its major debtors.
The New York-based company said it had reached an agreement with bondholders who own about 51% of the company's $600 million debt to reduce the debt burden by $480 million. In exchange, the bondholders would receive $120 million in senior secured notes due in 2008 and an 85% equity stake in the company.
Globix CEO Peter Herzig said his company, like many other Web hosters, built up its business in anticipation of demand that never materialized. But he also blamed the weakened U.S. economy.
Herzig said the company was not on its "last dime" when it negotiated its pre-packaged...