Apr, 2002 : XO Communications Says Bankruptcy Likely
📅 - Voice and data services company XO Communications Inc. (xo.com 👉 Total Reviews: 5
🙌 Average Rating: 1 / 10
👍 Good Reviews: 0
👎 Bad Reviews: 5
👈 Official Responses: 0) said in its annual report Friday that it would likely seek bankruptcy protection in the near future.
The struggling telecommunications firm said it is considering a number of investment and recapitalization opportunities in order to keep the company fully operational. "We anticipate that in order to complete any proposed investment and recapitalization it will be necessary for XO Parent to file a voluntary petition for relief under chapter 11 of title 11 of the Bankruptcy Code," the company said. "Accordingly, and as indicated in our previous disclosures, we anticipate that all, or substantially all, of the value of all investments in common stock of XO Parent will be lost."
Arthur Andersen LLP, XO's auditor, said in the filing it doubted the company's ability to continue operations for another year in its current state. "The Company has incurred recurring operating losses and negative cash flows from operating activities, has defaulted on its debt obligations and has begun to implement a proposed recapitalization that contemplates XO Parent filing a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code," the company said in the filing. "These matters, among others, raise substantial doubt about the Company's ability to continue as a going concern."
XO is currently considering two different takeover offers: one from buyout firm Forstmann Little and Mexican telecom Telefonos de Mexico S.A. de C.V., which made an offer in late November, and one from financier Carl Icahn. Earlier this month, XO said the Forstmann/TelMex offer was "clearly superior." However, XO said in its report that its "financial and legal advisors are reviewing and analyzing the terms of [Icahn's] proposal."
Shares in XO closed Thursday below eight cents, down significantly from their 52-week high of more than seven dollars.
🙌 Average Rating: 1 / 10
👍 Good Reviews: 0
👎 Bad Reviews: 5
👈 Official Responses: 0) said in its annual report Friday that it would likely seek bankruptcy protection in the near future.
The struggling telecommunications firm said it is considering a number of investment and recapitalization opportunities in order to keep the company fully operational. "We anticipate that in order to complete any proposed investment and recapitalization it will be necessary for XO Parent to file a voluntary petition for relief under chapter 11 of title 11 of the Bankruptcy Code," the company said. "Accordingly, and as indicated in our previous disclosures, we anticipate that all, or substantially all, of the value of all investments in common stock of XO Parent will be lost."
Arthur Andersen LLP, XO's auditor, said in the filing it doubted the company's ability to continue operations for another year in its current state. "The Company has incurred recurring operating losses and negative cash flows from operating activities, has defaulted on its debt obligations and has begun to implement a proposed recapitalization that contemplates XO Parent filing a voluntary petition for relief under chapter 11 of the United States Bankruptcy Code," the company said in the filing. "These matters, among others, raise substantial doubt about the Company's ability to continue as a going concern."
XO is currently considering two different takeover offers: one from buyout firm Forstmann Little and Mexican telecom Telefonos de Mexico S.A. de C.V., which made an offer in late November, and one from financier Carl Icahn. Earlier this month, XO said the Forstmann/TelMex offer was "clearly superior." However, XO said in its report that its "financial and legal advisors are reviewing and analyzing the terms of [Icahn's] proposal."
Shares in XO closed Thursday below eight cents, down significantly from their 52-week high of more than seven dollars.
URL source: http://www.thewhir.com/marketwatch/xo040102.cfm
Company: XO Communications
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