Colt to fight move to appoint administrator, says confident of repaying or refinancingbonds

New York, Oct. 9 - Colt Telecom Group plc said it will fight efforts to appoint an administrator and added that it is confident it will be able to repay or refinance its bonds when they become due between 2005 and 2009.

Colt said Wednesday in a statement that hedge fund Highberry Ltd. has notified Colt that it intends to present a petition for the appointment of an administrator to Colt.

"There is no basis whatever for Highberry taking this action," Colt commented, adding it believes the claims made by Highberry are "entirely without foundation."

"The Board will take whatever steps are required to protect the interests of its stakeholders against this self-serving attempt to force an unjustified transfer of value from shareholders to bondholders."

Colt noted that it has $1 billion of cash with no bank debt. EBITDA is growing and capital expenditure needs reducing as core network construction is complete.

The company said it expects to be free cashflow positive in 2005.

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