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Genuity's Back in BusinessGenuity's Back in Business

Genuity receives court approval of 'first day motions' to conduct business as usual, but Nasdaq has decided to delist it

December 5, 2002

2 Min Read
Genuity's Back in Business

WOBURN, Mass. -- Genuity Inc. today announced that the U.S. Bankruptcy Court for the Southern District of New York has approved orders with respect to Genuity's "first day motions" on December 2, 2002. The first day orders, in essence, allow Genuity to conduct business as usual relative to all of its customers, employees and suppliers and to maintain its existing cash management systems. These orders authorize payment of pre-petition employee wages, salaries, business expenses and other employee benefits. The court's approval of Genuity's initial motions, along with the $800 million Genuity has in cash, will provide the company with operational stability and the necessary financial resources as Genuity and Level 3 move through the transition period. The court will reconvene on Monday, December 9, 2002, to continue hearings on Genuity's initial motions. These court hearings follow Genuity's announcement on Wednesday, November 27, 2002, that it had reached a definitive agreement with Level 3, an international communications and information services company, in which Level 3 will acquire substantially all of Genuity's assets and operations for up to $242 million. To facilitate the acquisition process, Genuity and certain of its subsidiaries filed voluntary petitions for reorganization under Chapter 11 of the Bankruptcy Code. The transaction has the full support of Genuity's two largest creditors - the global consortium of banks that provided Genuity with a line of credit and Verizon Communications that provided a separate line of credit. In addition, Genuity today announced that The NASDAQ Stock Market notified the company that, as a result of its Chapter 11 filing, the fifth character "Q" was added to the company's trading symbol, changing the symbol from GENU to GENUQ at the opening of business on December 3, 2002. In addition, Genuity has received notice that in accordance with Marketplace Rules 4330 (a)(1) and 4450(f), and its inability to satisfy the listing requirements of Marketplace Rules 4450(b)(3)and 4450(b)(4), The NASDAQ Stock Market will delist the company's securities at the opening of business on December 5, 2002. On that date, Genuity's securities will be eligible to begin trading on the Over the Counter Bulletin Board (OTCBB). Genuity Inc.

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