US Unwired seeking to amend covenants, issues going concern warning

By Sara Rosenberg

New York, Aug. 7 - US Unwired is currently in discussions with its bank group to amend financial covenants contained in the credit agreement due to uncertainty surrounding the company's ability to remain in compliance with these covenants at either Sept. 30 or Dec. 31.

Considering the uncertainty of meeting certain financial covenants at and the actions that may result from covenant violations, such as accelerated repayments, and the operating losses incurred to date, "there is substantial doubt about US Unwired's ability to continue as a going concern," a filing with the Securities and Exchange Commission stated.

As of June 30, the company had $53.4 million in cash and cash equivalents and senior credit facility availability of $70.4 million. Indebtedness consisted of $88.7 million of bank debt, $336.7 million of senior subordinated discount notes, and $10.9 million in capital leases, promissory notes and vendor financing.

US Unwired is a Lake Charles, Pa. provider of wireless personal communications services.

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