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Microcap & Penny Stocks : TGL WHAAAAAAAT! Alerts, thoughts, discussion.
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To: Jim Bishop who started this subject10/15/2001 10:25:31 AM
From: SSP  Read Replies (1) of 150070
 
GTLS - GTS Dismisses Bankruptcy Move as "Negotiating Tactic"

Oct 15, 2001 (ComputerWire via COMTEX) -- A move by three debenture holders to
present a court petition seeking to have Global TeleSystems Inc (GTS) declared
bankrupt has been dismissed as a "negotiating tactic" by company chairman Robert
Amman.

GTS, which is attempting to negotiate with holders of almost $1.5bn worth of its
bonds to swap their debt for company assets, said the bondholders had agreed to
immediately withdraw the petition on "certain conditions" and talks are underway
to secure a deal.

Amman said the bondholders were simply trying to improve their bargaining
leverage in the talks on restructuring the company. Under US Bankruptcy rules,
GTS has 20 days to respond to the bondholders' petition to the court, and GTS
said the action does not affect the day-to-day operations of the business in any
way. It said it hopes to complete the negotiations on restructuring "very soon."

GTS also said it hopes to avoid Chapter 11 filings and fire sales of assets that
have afflicted peers such as Viatel Inc and PSINet Inc by entering into early
talks with bondholders. The Arlington, Virginia-based company, which operates in
Europe, aims is to cut interest payments of 158m euros ($133.5m) a year through
a major recapitalization.

In March, the company announced a deal to exchange its obligation to repay $500m
of debt in return for noteholders receiving a 90% stake in a company that will
own Esprit Telecom and other GTS units providing voice services in Europe (NBD
05/29/01).

Its major remaining asset is asset is its 22,000km Ebone fiber-optic network
that connects most of Europe's major cities and carries about a quarter of
Europe's internet traffic.
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