Teligent files for Chapter 11

Fixed-wireless service provider Teligent has announced plans to reorganize under Chapter 11 of the U.S. Bankruptcy Code.

During reorganization the company will continue to provide service to most of its customers and will sign up new customers, using funding from its existing lenders to cover its day-to-day expenses.

“Our intention is to remain a viable provider of broadband voice and data solutions,” said a spokeswoman for Teligent.

The bankruptcy filing comes as no surprise to those who follow the company. In recent weeks, Teligent had been given two extensions to prove it has $450 million in financing or else default on bank credit facilities.

The deadline for those extensions came today, prompting the filing.

Late last month, Alex Mandl--Teligent’s Chairman and CEO since 1996--resigned after 1/3 of the company was acquired by IDT. He was replaced by Yoav Krill, who previously was managing director of IDT’s European division.

IDT’s acquisition of the Teligent stake, along with the company taking a stake in ICG Communications, prompted speculation that it might somehow combine the three businesses in a play to gain access to the local loop.

But Teligent plans to emerge from restructuring separately, said the Teligent spokeswoman. She referred questions about IDT’s plans to IDT.

IDT officials were not immediately available for comment.