WEST POINT,ITC-DeltaCom, an integrated telecommunications and technology provider to businesses in the South, has received court approval for its proposed reorganization plan and expects to emerge cash flow positive by the end of the month.

The US Bankruptcy Court for the District of Delaware today confirmed the ITC-DeltaCom’s proposed plan of reorganization. The court confirmation follows overwhelming acceptance of the plan by the senior note holders, convertible note holders, and shareholders voting on the plan.

ITC-DeltaCom, based in West Point, GA, says that it anticipates the plan will become effective, and that the company will emerge from the restructuring process later this month. The confirmed plan of reorganization eliminates $515 million in senior note and convertible subordinated note debt. The plan also provides for a $30 million preferred equity financing to further strengthen the ITC-DeltaCom’s balance sheet.

“The pre-negotiated reorganization plan filed by our holding company and now confirmed by the court will allow our quick emergence as a free cash flow positive business,” Larry Williams, ITC-DeltaCom’s chief executive officer, said in a statement. “We will continue to focus on our core retail business and provide our customers with the exceptional level of service they have come to expect, positioning us for long-term financial viability and growth.”

Under the terms of the plan, the outstanding notes will be cancelled and the noteholders will receive common stock in the reorganized ITC-DeltaCom. The company and the lenders under the Company’s $160 million senior secured credit facility will enter into amendments to that facility, which are described in the plan.

ITC-DeltaCom: www.itcdeltacom.com