|By Marketwired .||
|March 3, 2014 04:59 AM EST||
SALT LAKE CITY, UT -- (Marketwired) -- 03/03/14 -- Today, Sorenson Communications, Inc. announced it has reached an agreement with a substantial majority of its owners and second lien note holders on the terms of a comprehensive debt restructuring, a move that will significantly strengthen its balance sheet. To implement the restructuring, the company is seeking expedited confirmation of a pre-packaged Chapter 11 plan of reorganization, filed today with the United States Bankruptcy Court in the District of Delaware.
Sorenson expects operations will continue uninterrupted, and the filing is not expected to affect Sorenson's users, employees, interpreters or suppliers. As part of the process, the company is seeking approval to pay suppliers in the ordinary course and to continue all programs benefiting users, as well as customary relief to continue its wage and benefit programs for its employees.
Sorenson is requesting a hearing to approve the restructuring plan and to set an expedited schedule for the company's emergence from Chapter 11. The company expects the Chapter 11 process to conclude within 60 days.
"The industry is forced to make changes as a result of the evolving regulatory landscape. Despite these regulatory challenges, Sorenson remains committed to continue to enable deaf and hard-of-hearing people to access functionally-equivalent telephone services," said Scott Sorensen, Chief Financial Officer of Sorenson Communications, Inc. "We have taken steps to ensure that the bankruptcy process will not affect our users, employees, interpreters or suppliers, and we intend to move forward as quickly as possible to complete our restructuring. We are very pleased that our note holders and our owners are supportive of the steps we have taken to improve our balance sheet."
About Sorenson Communications
Sorenson Communications® (www.sorenson.com) is a provider of industry-leading communications products and services for the deaf and hard-of-hearing. The company's offerings include Sorenson Video Relay Service® (SVRS®), the highest-quality video interpreting service; the Sorenson ntouch® VP videophone, designed especially for use by deaf individuals; ntouch® PC, software that connects users to SVRS by using a PC and webcam; ntouch® for Mac®, software that connects users to SVRS by using an Apple® computer; ntouch® Tablet, which turns the Apple iPad® with a front-facing camera into a larger-screen mobile VP; and ntouch® Mobile, an application empowering SVRS communication via mobile devices.
If you choose Sorenson as your default provider, you can port your existing 10-digit number to Sorenson from another provider or Sorenson can provide you with one for the geographic area where you live or work. If you later change your default provider, you can port your number to that provider. When selecting Sorenson, you must provide to Sorenson the physical address (i.e., the Registered Location) from which you are placing the call, so that Sorenson can properly route 911 calls you make. If you move or change your location, you must notify Sorenson immediately. You can update your Registered Location from your Sorenson videophone by calling 800-659-4810 or by visiting www.svrs.com/moving. Sorenson will confirm receipt of your Registered Location information. Emergency calls made via internet-based TRS may not function the same as traditional E911 service. For example, you may not be able to dial 911 if there is an internet-service failure or if you lose electrical power, and your 911 call may not be routed correctly if you have not updated your Registered Location. For more information on the process of obtaining 10-digit numbers and the limitations and risks associated with using Sorenson's VRS to place a 911 call, please visit Sorenson's website: www.sorenson.com/disclaimer. For information on toll-free numbering, please visit www.svrs.com/tollfree.