FYI
XO Communication expects to file for bankruptcy--report
NEW YORK, Feb 21 (Reuters) - Voice and data services firm XO Communications Inc. (OTC BB:XOXO.OB - news) expects to file for Chapter 11 bankruptcy protection within the next two weeks, Business Week magazine reported on Thursday.
XO, founded by wireless pioneer Craig McCaw, said on Nov. 29 that buyout firm Forstmann Little and Mexican telecommunications firm Telefonos de Mexico S.A. de C.V. planned to invest $400 million each in XO.
But XO said the restructuring, if completed, would essentially leave current stockholders with nothing.
Business Week reported that XO expects to file for bankruptcy protection in order to convince debtholders to agree to the restructuring plan.
``It could happen in days; it could be two weeks,'' a source close to XO told the magazine.
XO was not immediately available for comment.