MetroPCS to seek waivers from senior noteholders over financial reporting

By Jeff Pines

Washington, Oct. 20 - MetroPCS Inc. said it will seek limited waivers from the holders of its 10¾% senior notes due 2011 to prevent a default on the notes for not filing its financial reports with the Securities and Exchange Commission and providing them to the noteholders.

Dallas-based MetroPCS, which provides wireless communications, has $150 million of the notes outstanding. It is a subsidiary of MetroPCS Communications Inc.

Bear Stearns & Co. Inc. is the company's solicitation agent, and Mellon Investor Services LLC is the information and tabulation agent.

Earlier this month, the company's audit committee determined that the company's financial statements for the years ended Dec. 31, 2002 and 2003 and all earnings releases for the period were unreliable, according to an Oct. 6 news release filed with the SEC.

As a result of the problems, MetroPCS is delaying the release of its financials for the quarters ending June 30 and Sept. 30 until an investigation is completed.

In another filing, MetroPCS reported it terminated its controller and principal accounting officer, Michael Lavey.

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