Allegiance Telecom, a facilities-based national CLEC headquartered in Dallas, Texas, is continuing negotiations with its creditors on a recapitalization plan. The creditors have agreed to forbear from accelerating their loans or exercising their remedies until 15-May-2003. In return, Allegiance will make a principal payment of $5 million to the consortium of banks that have loaned the Company approximately $471 million of senior secured credit facilities. Allegiance said it would continue business as usual in the 36 markets it servers across the US.
http://www.algx.com
- For Q4 200, Allegiance Telecom reported revenues of $204.9 million, a decrease of 6.7% compared with Q3 2002 and an increase of 35.0% compared with Q4 2001. There was a consolidated EBITDA loss of $15.7 million for Q4 2002.
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In its quarterly financial report, Allegiance said it was pursuing financial and strategic negotiated alternatives to reduce its total indebtedness, which under the terms of the interim amendment must be reduced from the current $1.2 billion level to $645 million by 30-April-2003.
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The company’s capital expenditures for 2002 totaled $129.4 million versus $364.4 million in 2001, a reduction of 64.5%.
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Allegiance Telecom is headed by company co-founder Royce Holland, who previously was president and one of several co-founders of MFS Communications (acquired by WorldCom).