Dictation technology vendor Dictaphone's Chapter 11 reorganization plan has been confirmed by the U.S. Bankruptcy Court for the District of Delaware. As a result of the plan, the Stratford, CT-based firm said it expects to emerge from Chapter 11 protection by the end of this month as a stand-alone entity, and no longer a subsidiary of its current parent Lernout & Hauspie.
Dictaphone's unsecured creditors will own 100% of the common stock of the company, prior to customary dilution for the vendor's incentive program. Certain creditors will also receive warrants for rights to acquire additional shares, and certain other creditors will receive, in aggregate, $27.3 million of subordinated notes to be issued by the company, according to Dictaphone.
By AuntMinnie.com staff writersMarch 19, 2002
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