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Genuity says banks,Verizon provide credit extension
WOBURN, Mass., Aug 13 (Reuters) - High-speed communications services company Genuity Inc. <GENU.O> on Tuesday said it received an additional 30-day credit extension, or "standstill," from a consortium of banks and from No. 1 U.S. local telephone company Verizon Communications Inc. <VZ.N>,
The banks had provided a $2 billion line of credit and Verizon had loaned Genuity $1.15 billion. In exchange for the extension, Genuity said will make a $50 million payment to the bank group, with the commitment that the banks, Verizon and Genuity will pursue a binding term sheet on revisions to its credit facilities.
The extension follows a two-week standstill agreement on July 29, which the banks and Verizon entered into following Verizon's decision to relinquish its option to acquire a controlling interest in Genuity.
Genuity also said that as a first step in the restructuring of its business plan, it would refocus its operations and will no longer fund European hosting company Integra S.A. Genuity owns 93 percent of Integra.
Genuity shares closed on Tuesday at 35 cents, down a penny, or 2.8 percent.
08/13/02 18:36 ET
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