Aug 16, 2002 : Genuity Granted Extension by Lenders

📅 August 16, 2002 - Communications carrier Genuity Inc. (genuity.com) said on Thursday that its lenders have given the company another 30 days in which to renegotiate its debts.

Genuity's lenders, including a global consortium of banks and telecommunications company Verizon Communications, extended a standstill between the organizations that had lasted two weeks.
The companies have been in negotiations since July 29, when Verizon backed out of its takeover of Genuity, placing the company in default of its $2 billion line of credit and leaving it with only two weeks in which to renegotiate the debts.
In exchange for the extension, Genuity will pay $50 million to the bank group, with a commitment that all the organizations involved will pursue a binding term sheet revising the credit facilities.
The banking group had extended the $2 billion line of credit to Genuity and Verizon had loaned the company $1.15 billion.
Genuity also announced that it will no longer fund European hosting company Integra S.A. The company made the decision after Genuity's management and board of directors reviewed Integra's financials.