NEW YORK-Forstmann Little Co. has officially attempted to back out of its offer to put $800 million into bankrupt broadband communications company XO Communications, according to a Reuters report.
According to Forstmann, XO failed to meet certain conditions by a September 15 deadline, allowing Forstmann to pull out of the deal. But because XO is under bankruptcy court jurisdiction, further legal action will be necessary to void the contract.
In a deal finalized in January 2002, Forstmann and Telefonos de Mexico S.A. de C.V. agreed to pay $800 in exchange for 39 percent shares each of XO. Since XO’s bankruptcy filing in June, however, the companies have been fighting their way out of the agreement, while XO has maintained they must uphold it.
