XO Negotiates Restructuring

XO issues statement on continuing restructuring negotiations and forbearance agreement

April 17, 2002

1 Min Read

RESTON, Va. -- XO Communications, Inc. (OTCBB:XOXO) issued the following statement concerning its on-going discussions with investors and its forbearance agreement with the lending institutions under its secured credit facility that expired yesterday. Under the forbearance agreement, the lenders had 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 Carl Icahn. These actions are consistent with the terms of our definitive investment agreement with Forstmann Little & Co. and Telefonos de Mexico S.A. de C.V. 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 Communications Inc.

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