RESTON, Va.—In light of the expiration of its credit facility yesterday, XO Communications Inc. said it is still in negotiations with both Forstmann Little & Co., Telefonos de Mexico S.A. de C.V. and Carl Icahn.
XO said that under the forbearance agreement with Forstmann Little and Telmex, the lenders agreed, subject to certain conditions, not to exercise their remedies under the credit facility with respect to certain cross default events and fourth-quarter 2001 minimum revenue covenants.
“Presently, we are continuing our discussions with our lending institutions, holders of our senior unsecured notes and prospective investors—including the investment group being led by Icahn. These actions are consistent with the terms of our definitive investment agreement with Forstmann Little and Telefonos de Mexico, which continues to be in full force and effect.
“We are making progress in the negotiations with the Icahn-led investment group and we are in active discussions with the lending institutions under our senior credit facility and the senior noteholders with a goal of reaching an agreement on the terms of an investment and related balance sheet restructuring. As the lending institutions are actively involved with these discussions, they have indicated to XO that, despite the expiration of the forbearance agreement, they do not intend to take any additional action with respect to the enforcement of their rights under the secured credit facility so long as satisfactory progress on the restructuring continues to be made,” XO said.
