Genuity Announces Three-Day Extension Deal With Lenders
Friday November 22, 8:40 pm ET
WOBURN, Mass. -- Genuity Inc. (NasdaqNM:GENU - News) , which has been in default on its $2 billion credit facility since July, received a three-day extension from its lenders to complete negotiations to restructure its debt.
In a prepared statement Friday, the networking services provider said the extension with its bank group and Verizon Communications, which doesn't include a cash payment to the bank group, runs through Monday.
The agreement follows a 10-day extension granted Nov. 11 and a two-week extension granted Oct. 25.
The latest extension was agreed to by all of the banks that provided the $723 million in funding Genuity received in July as part of its line of credit, as well as by Verizon, which previously loaned Genuity $1.15 billion.
Genuity has repaid the banks $208 million of its debt outstanding to date.
In July, Verizon opted to relinquish its option to acquire a controlling interest in Genuity, triggering the default in Genuity's separate credit facilities with the banks and Verizon.
The Wall Street Journal reported earlier this month that Level 3 Communications Inc. (NasdaqNM:LVLT - News) was seeking to finalize a deal to acquire most of Genuity's assets for more than $100 million.
Genuity's shares closed Friday at 74 cents, up 11 cents, or 17%, on Nasdaq volume of 700,700 shares. Average daily volume is 131,231 shares.
-Susan Willetts; Dow Jones Newswires; 201-938-5400
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