U.S. Bankruptcy Judge Shelley C. Chapman in the U.S. Bankruptcy Court in the Southern District of New York has granted the first-day motions of Broadview Networks Holdings including the $125 million DIP facility provided by CIT Group/Business Credit, as administrative agent.

Court documents noted that CIT committed to provide this financing on July 18, 2012.

Broadview Networks filed voluntary petitions for reorganization under Chapter 11 of the U.S. Bankruptcy Code on August 22.

The company filed for Chapter 11 in order to effectuate its pre-packaged financial restructuring plan. This plan, which was voted on and accepted by an overwhelming majority of Broadview’s stakeholders, will eliminate half of the indebtedness under the company’s existing senior secured notes. This reduction in debt will lower our interest expense by approximately $17 million annually, providing for lower leverage and more financial flexibility. With a more appropriate capital structure to support our strategic plan and business objectives, we will have greater financial flexibility and liquidity to pursue cloud-based growth opportunities.

Because of the high level of support the company said it has obtained from bondholders and shareholders for the plan, Broadview anticipates it will be able to complete this financial restructuring in the fourth quarter of 2012.

The company’s restructuring counsel is Willkie Farr & Gallagher and its financial advisor is Evercore Group. The restructuring counsel for the ad hoc group of noteholders is Dechert and their financial advisor is FTI Consulting.

Broadview Networks is a network-based business communications provider serving customers nationwide with local and long-distance voice and data communications, premises-based and patented hosted VoIP systems, data services and a full suite of managed and professional services.

To view Broadview’s court documents, click here.