3/11/02
XO Issues Statement Concerning Senior Noteholder Proposal
RESTON, VA - XO Communications, Inc. (OTCBB:XOXO) issued the following statement today concerning a preliminary restructuring proposal made by certain holders of its senior unsecured notes on March 8, 2002:
"XO has received a preliminary proposal from certain holders of its senior unsecured notes regarding the terms of a potential financing and restructuring that is intended to replace the investment and related transactions provided for in XO's existing agreements with certain funds affiliated with Forstmann Little & Co. and Télefonos de México S.A. de C.V. (TELMEX). XO's board of directors, with the assistance of its financial and legal advisors, has carefully reviewed this proposal and concluded that it does not represent a feasible alternative for the successful restructuring of the company. Based on this assessment, the company has elected to reject the noteholders' proposal.
XO, with the support of lenders representing more than two-thirds of its senior secured debt, plans to move promptly to implement the transactions under the definitive agreements with Forstmann Little and TELMEX. The Forstmann Little/TELMEX proposed restructuring is clearly superior and will permit the company to complete its financial restructuring and raise the funding needed to secure the company's future."
For more information contact:
Todd Wolfenbarger / XO Communications
Media and Industry Analysts
703-547-2011 or 703-675-3496
Noelle Beams / XO Communications
Financial Analysts
703-547-2002
