Teligent says files for bankruptcy
VIENNA, Va., May 21 (Reuters) - Teligent Inc. said
on Monday it filed for Chapter 11 bankruptcy protection, but
said its lenders will supply interim funding to keep the voice
and data services company in operation.
Teligent, which uses radio signals rather than fiber-optic
cables or copper telephone wires to transmit voice and data
services, had $1.21 billion in assets and $1.65 billion in
debts, with more than 1,000 creditors, according to the
bankruptcy filing.
Teligent had faced a May 21 deadline to come up with $350
million in financing or face default on its credit agreement.
The company now will reorganize its capital structure under
Chapter 11 bankruptcy protection.
Earlier this month, Teligent laid off about 800 workers and
had its stock halted by the Nasdaq stock market.
IDT Corp. , which sells telephone calling cards and
long-distance services, recently acquired larger stakes in
Teligent and ICG Communications Inc. and set plans
to combine the two firms. It was unclear how the bankruptcy
filing would affect IDT's relationship with Teligent.
REUTERS
Rtr 11:17 05-21-01 |
