Aug, 2001 : GTS Upholds NYSE Decision to Suspend Trading
📅 - Global TeleSystems, Inc. (gtsgroup.com) reported today thatthe New York Stock Exchange's Review Committee has upheld the Exchangestaff's June decision to suspend the trading of GTS shares and seek from theSEC a de-listing of GTS shares on the Exchange.
GTS says it does not currently intend to take any further action on thismatter, as the de-listing does not affect the company's day-to-dayoperations. GTS shares continue to actively trade in the United States onthe Over the Counter Bulletin Board market under the symbol "GTLS."
"While we regret that the review committee did not recognise, as we believeis the case, that the staff's actions violated the Exchange's own rules andwas not in the interest of the trading public, we nonetheless want toemphasise that this latest development should have no effect whatsoever onthe operations of the company," said Robert Amman, GTS Chairman. "Our coreunit, Ebone, and our operations in Central Europe continue to beoperationally strong, remain leaders in their respective markets andcontinue to meet all obligations to customers, staff and suppliers in thenormal course."
GTS also announced that Deutsche Bank, Dresdner Bank and Bank of America,which are providing financing to GTS' Global TeleSystems Europe HoldingsB.V. subsidiary, have agreed to further extend the waiver of any defaultsunder their facility caused by GTS' election to not make interest paymentson GTS Europe's public debt while the company works toward a debtrestructuring plan with bondholders. The current waiver has now beenextended until mid-August.
GTS and their financing bank group continue their discussions, aimed atreplacing the current financing agreement with a longer-term financingfacility.
"Our discussions with the holders of all of the public debt and preferredsecurities of GTS and GTS Europe BV are progressing as planned," Amman saidin a statement. "As previously announced, we are exploring in thesediscussions various options for reducing our euro 1.65 billion total publicdebt burden and the euro 158 million in associated annual cash interestobligations. Taking these actions to recapitalise the balance sheet andstrengthen the capital structure of GTS and GTS Europe are the next logicalsteps in establishing the combination of Ebone and our Central Europe unitas a strong, well funded, EBITDA positive company that remains the marketleader for broadband services in Europe."
GTS says it does not currently intend to take any further action on thismatter, as the de-listing does not affect the company's day-to-dayoperations. GTS shares continue to actively trade in the United States onthe Over the Counter Bulletin Board market under the symbol "GTLS."
"While we regret that the review committee did not recognise, as we believeis the case, that the staff's actions violated the Exchange's own rules andwas not in the interest of the trading public, we nonetheless want toemphasise that this latest development should have no effect whatsoever onthe operations of the company," said Robert Amman, GTS Chairman. "Our coreunit, Ebone, and our operations in Central Europe continue to beoperationally strong, remain leaders in their respective markets andcontinue to meet all obligations to customers, staff and suppliers in thenormal course."
GTS also announced that Deutsche Bank, Dresdner Bank and Bank of America,which are providing financing to GTS' Global TeleSystems Europe HoldingsB.V. subsidiary, have agreed to further extend the waiver of any defaultsunder their facility caused by GTS' election to not make interest paymentson GTS Europe's public debt while the company works toward a debtrestructuring plan with bondholders. The current waiver has now beenextended until mid-August.
GTS and their financing bank group continue their discussions, aimed atreplacing the current financing agreement with a longer-term financingfacility.
"Our discussions with the holders of all of the public debt and preferredsecurities of GTS and GTS Europe BV are progressing as planned," Amman saidin a statement. "As previously announced, we are exploring in thesediscussions various options for reducing our euro 1.65 billion total publicdebt burden and the euro 158 million in associated annual cash interestobligations. Taking these actions to recapitalise the balance sheet andstrengthen the capital structure of GTS and GTS Europe are the next logicalsteps in establishing the combination of Ebone and our Central Europe unitas a strong, well funded, EBITDA positive company that remains the marketleader for broadband services in Europe."
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