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Financial

GTS/Esprit Restructuring on Track

LONDON -- Global TeleSystems (Europe) Ltd., formerly known as Esprit Telecom Group plc ("Esprit Telecom"), a subsidiary of Global TeleSystems, Inc. ("GTS") (NYSE: GTS; Easdaq: GTSG; Frankfurt: GTS), today announced that it has successfully completed its solicitation of consents from the holders of its $230,000,000 11½% Senior Notes due 2007, its DM 125,000,000 11½% Senior Notes due 2007, its $150,000,000 10.875% Senior Notes due 2008 and its DM 150,000,000 11% Senior Notes due 2008 (collectively, the "Notes") to certain amendments to the indentures governing the Notes. These amendments will permit Esprit Telecom to, among other things, enter into proposed senior secured credit facilities with its parent, GTS. These amendments are intended to provide Esprit Telecom and the other companies that comprise the GTS Business Services division of GTS with interim funding in connection with the implementation of the proposed restructuring of Esprit Telecom's obligations under the Notes announced on March 28, 2001. The amendments will also permit Esprit Telecom to undertake certain asset transfers related to the restructuring and to terminate its obligation under the indentures governing the Notes to file periodic reports with the SEC. Valid consents, representing a majority in principal amount of the outstanding Notes of each series, were received prior to the expiration of the consent solicitation.

http://www.gtsgroup.com
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