Teleservices agency TeleSpectrum Worldwide Inc. has reached a deal with its bank lenders to reduce its debt and recapitalize its balance sheets.
The agency plans to reduce its debt by converting about $125 million of what it owes to the banks into company stock. About $25 million in cash debt will remain after the completion of the deal, TeleSpectrum said.
Though the company will remain public, current shareholders would retain almost none of their ownership after the debt is converted, said Peter Pierce, chairman/CEO of TeleSpectrum. Fulfillment of the agreement is preliminary and is contingent upon the settlement of negotiations with creditors, the company said.
Based in King of Prussia, PA, TeleSpectrum operates 20 contact centers in the United States, United Kingdom and Canada. The company employs about 6,000 people worldwide.