Teligent Wins Brief Waiver of Debt Obligations

Broadband provider Teligent. Inc. has been 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 on a total of $350 million until May 15. If the company does not meet the new deadline, Teligent will be in default under the credit agreement.

An official company statement noted that Teligent can give no assurances it will be able to obtain any additional waivers under the new credit agreement. The effectiveness of the amendment and consent is also conditioned on Teligent meeting specific weekly spending limits.

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.

Additionally, Teligent confirmed that IDT, a facilities-based multi-national telecommunications carrier, purchased on April 17 the 33.7 percent in Teligent previously held by ATT’s Liberty Media unit.

The acquisition moves Yoav Krill, the managing drector of IDT’s European division, to chief operating officer and acting chief executive officer of the company, replacing Teligent Chairman And Chief Executive Officer Alex Mandl. Howard Jonas, chairman, chief executive officer and treasurer of IDT, has been appointed as chairman of the board of directors of Teligent.

Based in Vienna, Va., Teligent offers business customers local, long distance, high-speed data and dedicated Internet services over its digital SmartWave local networks in major markets throughout the United States. The company is working with international partners to extend its reach into Europe, Asia and Latin America.