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| Independent Wireless One (IWO) Holdings Completes its Restructuring
February 10, 2005 – James J. Loughlin, Jr., Chief Restructuring Officer of IWO Holdings Corp., has announced the successful restructuring of the Company's debt obligations and the renegotiation of its agreements with Sprint. On February 9, 2005, the Federal Bankruptcy Court in Delaware confirmed the Company's Pre-packaged Chapter 11 Plan of Reorganization. Loughlin comments, "With the confirmation of the IWO Holdings Pre-packaged Chapter 11 Plan of Reorganization, we have completed a very creative and highly successful debt restructuring whereby the IWO Senior Secured Bank Lenders were paid $215 million in full satisfaction of the Company's obligations to them. In addition, the IWO Noteholders converted their $160 million of debt into 100% of the equity of the reorganized IWO. This transaction is the culmination of the efforts to improve the profitability and cash flow of IWO which led to the successful structuring of a transaction that maximized creditor recovery." With the support of an investment banking team led by Bear Stearns, Merrill Lynch and Lehman Brothers, IWO was able to raise $232 million of new high yield debt which was used to fund the reorganization plan. Loughlin adds, "As IWO's performance improved during 2004, it became clear that the credit markets would be receptive to a high yield note offering by the Company. The proceeds from the offering were deposited into a newly created IWO Escrow Company entity. Upon confirmation of the Plan of Reorganization, IWO Escrow was merged into IWO Holdings. It was a creative and extremely effective way to raise new capital to repay the banks." The Pre-packaged Chapter 11 was developed after months of discussions among IWO, its Senior Secured lender group, led by JP Morgan, and an hoc committee of Noteholders that included AIG, Eaton Vance and Ares. The Senior Lenders' legal advisors were Wachtel Lipton, while the Noteholders were advised by Paul Weiss. Loughlin notes, "It was a constructive and collaborative process that brought the IWO restructuring to a successful conclusion. Each creditor group was very pleased with the final result, which exceeded their expectations. IWO was also able to renegotiate its agreements with Sprint which were critical to achieving the company's business plan and completing the restructuring." IWO was advised by Craig Moore and Eugene Lee of Evercore Restructuring LLP, and Jeffrey Tanenbaum and Ted Waksman of Weil, Gotshal + Manges. "It was a pleasure to work with these two firms during the past year. Their hard work and professionalism allowed us to complete a complex restructuring in an efficient and creative manner. The IWO estate benefited from the effectiveness of each of the professionals involved in this matter," noted Loughlin. John Fleming, a Director with LM+Co supported Loughlin in his efforts as CRO throughout the engagement, which lasted nearly 12 months. Loughlin Meghji + Company is a restructuring advisory firm with offices in New York and Cleveland. It provides crisis management and financial advisory services to companies and their creditors. In addition, the Firm provides M+A advisory services to both distressed and healthy companies. For Additional Information, Contact: James J. Loughlin, Jr. Principal Loughlin Meghji + Company 212 340 8421
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