Teligent trading suspended; loan deadline looms
Teligent Inc. laid off 900 workers and its trading on NASDAQ was suspended on Friday. The troubled company also faces a loan extension deadline tomorrow, and will be in default on its loans if that's not met.
The company also is waiting to hear back from NASDAQ regarding a hearing Teligent requested earlier this month after it was threatened with delisting. "We have 45 days," Teligent spokeswoman Tita Thompson told CEDaily.
Approximately 900 employees were affected by the layoffs on Friday, she added. And while she would not disclose the information needed by NASDAQ regarding the suspension, "It was partly a result of the employee reduction on Friday," she says. She did not know how long the suspension would last.
As far as its $350 million loan extension, "We obviously have a deadline for tomorrow and are pursuing all of our options," Thompson says. She would not speculate on whether or not Teligent will meet the deadline.
On its original April 30 due date, Teligent announced it was granted a waiver to an amendment and consent to its credit agreement with The Chase Manhattan Bank, Goldman Sachs Credit Partners, Toronto Dominion Bank and other lenders, providing an extension until May 15, 2001.
The amendment "originally required Teligent to deliver definitive documentation with respect to vendor financing (in an aggregate amount of at least $250 million) and convertible notes (in an aggregate amount of at least $100 million) no later than April 30, 2001," it reported at the time. "If Teligent does not meet the new May 15, 2001 deadline, Teligent will be in default under the credit agreement and there can be no assurance that Teligent would be able to obtain any additional waivers under the credit agreement."