Genuity receives 15-day extension on standstill agreement

By Sara Rosenberg

New York, Oct. 11 - Genuity Inc. received an additional 15-day extension on the standstill agreement with the banks that provided $723 million in funding as part of a $2 billion credit facility and from Verizon Communications Inc., provider of a $1.15 billion facility. During the standstill, parties will continue to work towards restructuring Genuity's credit facilities.

In return for the newest extension agreement, Genuity will pay $12.5 million to the bank group.

"Today's announcement is another key step in our efforts to restructure our debt with our lenders," said Paul R. Gudonis, chairman and chief executive officer, in a news release. "Given the complex nature of these negotiations, it is important that we receive these extensions so that we are able to review all of our options and ultimately reach a final resolution."

The standstill agreement was reached on July 29 following Verizon's decision to relinquish its option to acquire a controlling interest in Genuity, which resulted in an event of default under Genuity's credit facilities.

Genuity is a Woburn, Mass. IP networking services provider.

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