360networks Will Not Make Scheduled Bond Interest Payment

VANCOUVER, June 15 -- 360networks, a provider of network services to telecommunications and data-centric organizations, announced it will not make a $10.9 million interest payment due today on its 12.5 percent Senior Notes. Under the terms of the debt, 360networks has another 30 days to make the payment in order to avoid default consequences under the Notes.
The company is not making this payment to preserve cash as it reviews its options. Last month, 360networks announced it was in discussions with current shareholders and others to resolve its funding issue. As these discussions have not been successfully concluded, the company is now concentrating its efforts on other alternatives, including restructuring. 360networks has retained Lazard Freres to assist the company in this process.