Otelco Inc. announced that it has emerged from bankruptcy and completed its balance sheet restructuring process, including an extension of its senior credit facility. The company repaid $28.7 million on its senior credit facility and extended its maturity through April 2016. The remaining balance of $133.3 million will have quarterly principal payments of 1.25% of the new loan amount plus interest on the outstanding balance at 6.5%. In addition, the company will utilize 75% of its quarterly free cash flow to further reduce the outstanding balance on the loan each quarter. The facility includes a $5.0 million revolver which was undrawn at closing. These actions, along with the actions described below, complete the requirements of the company's pre-packaged Plan and allow Otelco to exit bankruptcy on May 24, 2013.

The company also appointed new Board Members. Norman C. Frost - Mr. Frost is currently a private investor. He served on the Board of Directors of Iowa Telecom from 2006 until its acquisition by Windstream in 2010. He was a Managing Director of Legg Mason Wood Walker Inc. and head of that firm's Technology sector in the Investment Banking Department from 1998 to 2005. Brian A. Ross - Mr. Ross is currently an independent consultant. Until December 2012, Mr. Ross served as President and CEO of KnowledgeWorks. He serves on the Board of Directors for Alaska Communications where he is a member of the audit committee and is the chairperson of the compensation committee. Gary Sugarman - Mr. Sugarman is Managing Member of Richfield Capital Partners. Over a 20-year period. Mr. Sugarman sits on the board of TDS Telecom and wireline assets; and LICT Corp.