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View Full Version : Is Level 3 (LVLT) Close To Default?


24/7 Wall St.
02-02-2009, 11:40 AM
24/7 Wall St. Daily News

http://www.247wallst.com/images/2009/02/02/95129c_2.jpg (http://247wallstreet.typepad.com/.shared/image.html?/photos/uncategorized/2009/02/02/95129c_2.jpg)Level 3 (LVLT) has been dogged by $6.4 billion in debt from M&A activity and virtually non-existent operating income.

The tough credit environment is catching up to the firm.

LVLT has $700 million in debt due over the next several quarters. In all odds that money can't be refinanced.

“As the operations continue to deteriorate, there’s a slimmer and slimmer chance that the credit markets are going to give them a chance to refinance,” Stanford Group Co.’s Michael Nelson said, according to (http://www.bloomberg.com/apps/news?pid=20601109&sid=aIggI1hkembU&refer=home) Bloomberg.

LVLT is trading at $1, but without positive news about its balance sheet, the company is likely to watch that share price drop as the year wears on.

Douglas A. McIntyre

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complete story here... (http://www.247wallst.com/2009/02/is-level-3-lvlt.html)