Friday, March 8, 2002 | 10:43 a.m.
RESTON, Va. -- XO Communications Inc., a big, unprofitable phone and Internet company active in Las Vegas, will proceed with recapitalization plans despite financier Carl Icahn's opposition.
XO said in November it would get $800 million from leveraged-buyout firm Forstmann Little & Co. and Telefonos de Mexico SA in a plan that would reduce debt by $4 billion and wipe out the value of its equity. Icahn, an XO bondholder, opposed the plan Thursday, XO said in a statement.
The company "will continue to pursue the transactions under the definitive agreement with Forstmann Little and Telmex to complete its financial restructuring and raise the funding needed to secure the company's financial future," XO said in the statement.
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