IWO Holdings misses July 15 interest payment

By Jeff Pines

Washington, July 28 - IWO Holdings, Inc. missed its $11.2 million interest payment scheduled July 15 on its 14% senior notes due 2011, the company said in a Securities and Exchange Commission filing.

The Lake Charles, La.-based cellular phone network company has until Aug. 14 to make the payment before going into default on the notes.

IWO has $160 million of the 14% notes.

On July 1, the company did make a $14.7 million payment on all of its overdue interest on its senior secured credit facility through June 30. IWO has not made any principal payments on secured facility since March. As of June 30, it was not in compliance with the senior secured facility.

The company believes "there is substantial doubt about its ability to continue as a going concern." It expects to file for bankruptcy some time this year.

Discussions with its creditors to develop a consensual restructuring continue.

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