SOURCE: PRC

June 20, 2008 15:20 ET

Court Confirms PRC Plan of Reorganization

Company to Exit Chapter 11 With Positive Cash Flow and Strengthened Balance Sheet

Client, Employee and Creditor Support Contributed to Successful Reorganization

PLANTATION, FL--(Marketwire - June 20, 2008) - PRC, LLC and its affiliated debtors ("PRC"), a leading provider of outsourced customer management services, announced today that the U.S. Bankruptcy Court for the Southern District of New York entered an order confirming their Plan of Reorganization. At the hearing, the Honorable Martin Glenn ruled that PRC had met all of the statutory requirements to confirm its Plan. With this action, PRC is set to complete its restructuring and emerge from Chapter 11 protection in the coming weeks.

Upon consummation of the Plan and PRC's emergence from Chapter 11, a significant part of PRC's debt will be converted into equity and PRC's prepetition senior and second lien secured lenders will become PRC's equity holders through a private holding company. PRC's current equity interests will be canceled and prepetition equity holders will receive no distribution under the plan. Other creditors will receive distributions as provided under the plan.

"Receiving the Court's approval of our Plan of Reorganization after just five months of restructuring is a testament to the dedication of our employees and to the confidence that our clients have shown in us," said Jerry McElhatton, PRC's CEO. "By restoring PRC's stability and financial strength, we will emerge as a much healthier Company poised for growth and success. I want to thank our clients for their support and commend the PRC team and our creditor groups for their efforts."

Mr. McElhatton added, "We accomplished what we set out to do at the start of this process, namely making the Company cash flow positive, de-leveraging our balance sheet and improving the Company's operations and efficiency. We are now well positioned to compete effectively in the marketplace and continue to exceed the high standards of our clients and their customers."

A new Board will be formed on PRC's emergence from Chapter 11 to assume responsibility for the direction and management of PRC. Mr. McElhatton and four directors chosen by the prepetition secured lenders will be the initial directors.

The Company noted that it expects the plan of reorganization to be consummated and for PRC to emerge from Chapter 11 in late June or early July.

About PRC:

PRC is an outsourced Business Solutions Provider globally delivering Customer Management and Sales & Marketing services on behalf of leading brands. With over 25 years of experience, PRC delivers solutions that support communications to target, acquire, grow, retain and develop customer relationships that deliver a positive return on their clients' investment. Headquartered in Ft. Lauderdale, Florida, the Company supports clients worldwide through its global network of centers. For more information, visit www.prcnet.com.

Contact Information


  • PRC Media Contact:
    Alicia Miyares
    VP, Marketing & Communications
    954-693-4461