It’s looking more and more like Forstmann Little & Co.’s recapitalization proposal for XO Communications Inc. is the best bondholders are going to get. An investment banker close to the situation said, “This company becomes less valuable every day” it does not have proposal in place for its phone and Internet services business. However, the company posted better fourth quarter numbers in 2001 versus 2000. It logged a $39.5 million loss on revenue of $343 million, compared with a year-earlier loss of $88.7 million on revenue of about $250 million. The banker added that he expected the bonds, some $3.6 billion in high yield debt, to continue to fall until a restructuring proposal gets agreed upon.
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