NEW YORK-A day before the scheduled presentation of its bankruptcy reorganization plan to a federal court Nov. 15, XO Communications Inc. reported third-quarter losses of $695.2 million, or $1.57 per share, on revenues of $301.5 million.
The company cited the weak economy and its February sale of European operations as reasons for the declines. By comparison, it lost $398.9 million, or 12 cents per share, and earned $331.5 million during the third quarter of the last fiscal year.
“This is really the first quarter we’ve seen the revenues decline. We still hope to emerge from Chapter 11 close to the end of the year, and post restructuring, we do expect to gain some in overall growth,” said Noelle Beams, treasurer and vice president of finance.
XO, headquartered in Reston, Va., sought bankruptcy protection in June, at which time it was $8.5 billion in debt. The wireless broadband carrier, which has 96,000 customers, reported it now has about $554.5 million in cash on hand, which is enough to sustain operations through next year, provided it is allowed to begin restructuring before year-end.
Under its proposal, financier Carl Icahn, who holds 85 percent of XO’s senior secured debt, would obtain an 80-percent ownership stake in the company.
