Teligent gets loan reprieve; CEO/Chair steps down
Teligent Chair and CEO Alex Mandl stepped down, the company reports today. Likewise, its creditors extended its due date and IDT picked up 33.7 percent interest in the company from Liberty Media.
Teligent will divide Mandl's responsibilities between IDT execs: Yoav Krill, managing director of IDT's European division, will be COO and acting CEO of Teligent. Howard Jonas, IDT chair, CEO and treasurer, will be Teligent chair.
Teligent spokeswoman Tita Thompson could not say who the permanent CEO would be or whether Jonas would keep his other commitments. She did confirm that the management change and IDT's purchase were related, but would not comment on whether or not Teligent's loan extension was connected to new management.
Teligent also got the loan extension it needed, putting off the due date for the $350 million in vendor financing and convertible notes it owed by today. The deadline was extended to May 15, under a waiver to its credit agreement with The Chase Manhattan Bank, Goldman Sachs Credit Partners, Toronto Dominion Bank and other lenders.
If it doesn't meet the deadline, it will be in default. Teligent offered no assurance it would be able to obtain any additional waivers. The extension is conditioned on Teligent meeting weekly spending limits, it reports.
Finally, Teligent confirmed IDT purchased a 33.7 percent interest in Teligent from Liberty Media. IDT execs will replace Teligent's outgoing chair and CEO.