McLeodUSA gets extension of forbearance agreement regarding missed payments

By Sara Rosenberg

New York, Sept. 30 - McLeodUSA Inc. has received from loan lenders another extension of its forbearance agreement, this time through Oct. 31, according to a company news release.

Under the agreement, the lenders have agreed not to take any action as a result of non-payment by the company of certain principal and interest payments and any related events of default through Oct. 31.

The forbearance agreement was originally entered into on March 16 and was then extended to Sept. 30.

As was previously announced, the company is negotiating terms of a capital restructuring with its lenders. The capital restructuring alternatives being negotiated do not involve any recovery for the company's current preferred or common stockholders.

McLeodUSA is a Cedar Rapids, Iowa-based provider of integrated communications services.

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