High debt and low share prices have forced Alamosa Sprint PCS in Lubbock to restructure its debt.
CEO David Sharbutt celebrated the listing of Alamosa PCS on the New York Stock Exchange two years ago. Now, heavily in debt, the local company was forced to take drastic action. Bondholders agreed to exchange their Alamosa bonds for new ones at a lesser amount, helping the company eliminate some of that debt to avoid bankruptcy.
Sharbutt, "The results of the exchange offer we reduced our debt by about $250 million. In addition to that we reduced our cash requirements over the next 5 years, by about $260 million. So it greatly improved our balance sheet and our operations."
Sharbutt says Lubbock Sprint PCS customers can rest assured that there will be no interruption of service or jobs cut as a result of this restructuring plan.