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RCN says it anticipates filing for Chapter 11. Dunno how I missed this news. Incredibly, I was considering buying the 10% 2007 bonds (CC-rated) last year. The price is back to its Nov 2003 level, but the prospects don’t look great. It’d be just crazy to buy now.

RCN Corp. said on Thursday that the company had extended a forbearance agreement with lenders as it negotiates a consensual bankruptcy reorganization plan.

From the RCN web site:

However, RCN has said that the restructuring will likely result in a conversion of a substantial portion of its outstanding Senior Notes into equity and an extremely significant, if not complete, dilution of current equity.

I absolutely love the way they use the term “extremely significant dilution of current equity.”