Sunday, May 22, 2005

McLeodUSA's Lenders Extend Forebearance Period

McLeodUSA, one of the nation's largest independent, competitive telecommunications services providers, and its lenders have agreed to the extension of the forbearance agreement initially entered into on March 16, 2005. In light of McLeodUSA's continuing pursuit of strategic alternatives and / or a financial restructuring the parties agreed to extend the forbearance agreement through July 21, 2005.

McLeodUSA's lenders continue to agree not to take any action as a result of non-payment by the company of certain principal and interest payments due in March and June of 2005 and any related events of default through July 21, 2005.

  • As of March 31, 2005, McLeodUSA had 38 ATM switches, 39 voice switches, 699 collocations, 432 DSLAMs and approximately 2,300 employees.

  • Forstmann Little & Co. is a 58% shareholder in the company.


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