Communications Corp. of America disclosure statement, termination of exclusivity hearing again continued

By Jennifer Lanning Drey

Portland, Ore. May 21 - Communications Corp. of America's hearing on approval of its disclosure statement and termination of exclusivity was continued to June 25 at the U.S. Bankruptcy Court for the Western District of Louisiana, according to a source familiar with the case.

Testimonies heard Monday were a continuation from an April 13 hearing on the matters.

General Electric Capital Corp., which is the agent of Communication Corp.'s senior lenders, filed a motion on March 24 asking the court to terminate the company's exclusive periods to file a plan of reorganization and solicit votes on the plan.

According to the motion, the lender agent said with the benefit of a monopoly on the plan process, the company seeks to give shareholders the exclusive opportunity to acquire the reorganized companies' equity through a plan engineered to deliver acceptances of artificially impaired classes and insider or insider-friendly claims.

Communications Corp. of America, a Lafayette, La., television station owner, filed for bankruptcy on June 7, 2006. Its Chapter 11 case number is 06-50410.

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