Mpower Reshapes its Business by Exiting Certain Markets

Mpower Communications, a facilities-based competitive carrier that recently emerged from Chapter 11, announced plans to exit several markets and focus its operations on California, Nevada and Illinois. As part of the new geographic concentration, Mpower will transition its customers and assets in Florida, Georgia, Ohio, Michigan and Texas to other service providers. The company would be left with a base of 75,000 customers in its three core states. Mpower anticipates a cash infusion for each of these transactions, as well as a reduction in ongoing costs. In July of 2002, Mpower completed a financial recapitalization that retired approximately $600 million in long-term debt and preferred stock. As of January 3, 2003, the company’s remaining $50 million in long-term debt was also retired.
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