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| Jul 21, 2005 1:03 pm |
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re: Mcleod USA |
Ira Stoller
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From the delisting notice dated June 17th:
In light of the previously announced strategic and financial restructuring alternatives it is pursuing, the
Company has determined not to request a hearing to appeal Nasdaq’s determination to delist the Company’s securities.
There can be no assurances that the Company will be able to identify a strategic partner or buyer, reach
agreement with any such strategic partner or buyer, or reach an agreement with its lenders regarding a
capital restructuring. As previously announced, the Company is exploring these alternatives pursuant to a
forbearance agreement between the Company and its bank lenders. The forbearance period runs through
July 21, 2005. In the event these alternatives are not available to the Company, it is likely that the
Company will elect to forgo making future principal and interest payments to its lenders while it continues
to seek an extended forbearance period or permanent capital restructuring from its lenders, or alternatively,
the Company could be forced to seek protection from its creditors.
While the Company continues to explore a variety of options with the view toward maximizing value for
all of its stakeholders, none of the options presented to date have suggested that there will be any recovery
for the Company’s current preferred stock or common stock holders. Accordingly, it is unlikely that
holders of the Company’s preferred stock or common stock will receive any recovery in a capital
restructuring or other strategic transaction.
The Company’s securities will not be immediately eligible to trade on the OTC Bulletin Board or in the
“Pink Sheets”. The securities may become eligible if a market maker makes application to register in and
quote the security in accordance with SEC Rule 15c2-11, and such application is cleared. Only a market
maker, not the Company, may file a Form 211. The Company is not aware that a market maker intends to
make such an application.
Doesn't sound too promising. Sounds like one more clec biting the competitive dust. It's funny that just a few days before the delisting notice they won an award for the best human resources group.Private Reply to Ira Stoller (new win) |
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