The previous plan by the Sarasota, FL-based developer of cell telephone sites called for two new sources of equity capital, Fortress Investment Group LLC and Greenhill Capital Partners, both of New York, for $205 million along with a $340 million credit facility.
A prepared statement from Pinnacle claims it was the planned credit facility that made investing companies balk at the deal. Investors expressed concern over the current market conditions, particularly for telecommunications, the statement says.
A deal must be reached on or before Aug. 20 or the plan could be withdrawn, resulting in a new vote by creditors for a new reorganization plan.
"Pinnacle doesn't have a whole lot of choices," John Olson, managing partner and head of Stearns Weaver Miller Alhadeff & Sitterson PA's statewide bankruptcy and insolvency practice, tells Globest.com. "Either it gets an equity investment or its plans will completely unravel."
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