Mandl steps down from Teligent

With more than one-third of the company having been sold to IDT, Teligent today announced that Chairman and CEO Alex Mandl has resigned from the financially distressed broadband fixed-wireless operator.

Yoav Krill, Managing Director of IDT’s European division, has been appointed chief operating officer and acting CEO. Howard Jonas, IDT’s chairman, CEO and treasurer, is Teligent’s new chairman.

The changes come after Liberty Media sold its 33.7% stake in Teligent to IDT for an undisclosed amount on April 17, giving Liberty’s seats on Teligent’s board to IDT.

IDT’s reason for acquiring interest in the financially troubled fixed-wireless provider is currently unclear. IDT likely will seek to restructure the company with a new capital structure, possibly using bankruptcy as a protective vehicle, said Riyad Said, managing director and senior analyst at Friedman, Billings, Ramsey

“The main options for IDT are to try to help Teligent restructure the debt they have or to look for other ways to prepackage financing,” he said. “Looking beyond that, IDT would look for ways to integrate Teligent’s network into their Internet backbone in the U.S.”

For Teligent, attempting a turnaround in its current state would be extremely difficult. The company has received a 15-day waiver of a bank amendment under which it has to May 15 to prove that it has at least $250 million in vendor financing and $100 million in convertible notes.

If it does not, Teligent will be in default of credit agreements with The Chase Manhattan Bank, Goldman Sachs Credit Partners, Toronto Dominion Bank and other lenders. Currently Teligent has no vendor financing or convertible notes.