Genuity/Debt Extension-2: In Default Since July
Dow Jones Business News
Friday October 25, 4:27 pm ET
WOBURN, Mass. -(Dow Jones)- Genuity Inc. (NasdaqNM:GENU - News) received a two-week extension from its lenders on its standstill credit agreement, as debt-restructuring talks continue.
In a press release Friday, Genuity said the newest extension, which runs through Nov. 12, requires the company to make a $12.5 million payment.
Genuity has been in default of a $2 billion bank credit agreement and a $1.15 billion loan from Verizon Communications since July 24, when Verizon announced that it wouldn't acquire a controlling interest in the company.
The Internet networking company received $723 million in funding from the banks, and has repaid about $200 million of the outstanding debt.
The bank group and Verizon have given Genuity several extensions since the company went into default. Genuity has said it may be forced to file for bankruptcy if the creditors demand payment.
Genuity's shares closed Friday at 34 cents, up 4 cents, or 13.3%, on Nasdaq market composite volume of 116,200 shares. Average daily volume is 396,358 shares.
WOBURN, Mass. -(Dow Jones)- Genuity Inc. received a two-week extension from its lenders on its standstill credit agreement, as debt-restructuring talks continue.
In a press release Friday, Genuity said the newest extension, which runs through Nov. 12, requires the company to make a $12.5 million payment.
Genuity has been in default of a $2 billion bank credit agreement and a $1.15 billion loan from Verizon Communications since July 24, when Verizon announced that it wouldn't acquire a controlling interest in the company.
The Internet networking company received $723 million in funding from the banks, and has repaid about $200 million of the outstanding debt.
The bank group and Verizon have given Genuity several extensions since the company went into default. Genuity has said it may be forced to file for bankruptcy if the creditors demand payment.
Genuity's shares closed Friday at 34 cents, up 4 cents, or 13.3%, on Nasdaq market composite volume of 116,200 shares. Average daily volume is 396,358 shares.
-Kara Wetzel; Dow Jones Newswires; 201-938-5388
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