Faced with a Monday deadline to file for voluntary bankruptcy or contest the forced bankruptcy of a subsidiary, Arch Wireless Inc. today says it has filed for Chapter 11 reorganization and received approval from creditors to reorganize its roughly $2 billion in debt.

A majority of its secured creditors agreed to a plan that would require AWI to issue equity and its operating subsidiary, Arch Wireless Holdings Inc. would issue $300 million principal amount notes due in 2007 and 2009 in exchange for all existing debt and equity securities. The company also said it has received $50 million in debtor-in-possession financing from a group of banks that includes TD Securities Inc. Arch Wireless aims to continue normal business activity during its reorganization, a statement says.

'We are pleased to receive the support of Arch's secured investors,' says C. Edward Baker, Arch's chairman and CEO. 'In time we expect to emerge as a financially sound and stable operating entity and continue to pursue opportunities in the growing market for two-way messaging and wireless mobile data.'

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Arch Wireless Faces Bankruptcy Deadline 12/5/01
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