RCN gets extension of waivers until May 3

By Jeff Pines

Washington, April 1 - RCN Corp. said its lenders and members of its noteholders' committee agreed to extend the forbearance agreements until May 3. The previous extension to the original agreements ended April 1.

RCN has missed payments on its 10 1/8% senior notes due 2010 and its 9.8% senior notes due 2008.

Not every noteholder is bound by the agreement, which means a default could be declared, which would accelerate the company's debt. RCN has said it does not have the cash to pay everyone off.

On March 31, Nasdaq notified the company that its stock price dropped below the $35 million market value minimum for 10 straight days. If the company's market value doesn't pop above $35 million for 10 consecutive days, it will be delisted.

The Princeton, N.J.-based telecommunications provider said it wants to reach a consensual financial restructuring.

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