Globix Files Chapter 11

Globix

The Web hosting provider said the bankruptcy filing is part of a prearranged plan to reduce its debt and emerge from bankruptcy by this April.

Globix plans to exchange its currently outstanding $600 senior notes for $120 million in new senior notes and approximately 85 percent of the reorganized company's new common stock.

The company said it is also in negotiations with its landlord in London to rent out some of its office space to cut some of its operating costs.

Creditors and preferred stockholders approved Globix reorganization plans in February.