Flag Telecom emerges from Chapter 11 with network intact
October 10, 2002--FLAG Telecom Holdings Ltd. announced today that it has successfully emerged from Chapter 11 proceedings in the United States.
FLAG Telecom Holdings Ltd. announced today that it has successfully emerged from Chapter 11 proceedings in the United States. Accordingly, FLAG Telecom's ongoing business operations are no longer subject to the restrictions imposed by the Chapter 11 process or the U.S. Bankruptcy Court. The Company, which commenced Chapter 11 proceedings on April 12, 2002, has been reorganized as FLAG Telecom Group Ltd. and will initially trade over the counter under the symbol FLHLQ.
Concurrently, FLAG Telecom announced that it has appointed Mark Spagnolo, a member of the Company's newly constituted Board of Directors, to serve as its new interim Chief Executive Officer, and that it has commenced a search for a permanent chief executive officer. Spagnolo, an industry veteran who served as the president and chief executive officer of Metromedia Fiber Network Inc. from 2001 to 2002 and of UUNet from 1997 to 2000, will replace Andres Bande, who has resigned as chairman and chief executive officer after five years with FLAG. Bande will act as an advisor to the chief executive officer and the Board for the remainder of this year.
"The company, with the overwhelming support of its creditors, has emerged from bankruptcy with a financially sound capital structure and can now concentrate 100% of its energies on implementing its business plan," contends Spagnolo. "We greatly appreciate the tremendous support of our customers and vendors during the Chapter 11 proceedings and look forward to continuing to regain their confidence."
FLAG Telecom's developed global fiber-optic network, which has been built with network segments and through collaboration with third parties, remains intact. The FLAG network reaches key high-volume destinations in Europe and the United States, as well as a number of countries in Asia and the Middle East, and enables the company to service its established customer base of over 130 worldwide customers. The company's principal customers are incumbent national operators, international licensed telecommunications companies, emerging telecommunications companies, and ISPs.
FLAG Telecom's goal is to establish itself as a leading independent global transport and network services provider. To meet this end, the company intends to continue to enhance the connectivity between its own network and other networks to enable new customers to readily move traffic onto the FLAG Telecom global network, to deepen and broaden relationships with its current customers and to expand the range of its products and services.
For more information about FLAG Telecom (Hamilton, Bermuda), visit the company's Web site at: www.flagtelecom.com.