According to XO, the company's long term debt is now approximately $500 million, down from $5.1 billion, and will not be required to pay cash interest until the company achieves the financial targets specified under the related credit agreement. The new credit facility, says XO, is secured by all the company's assets other than the approximately $275 million in cash and cash equivalents held in accounts that were released from liens following the closing of the restructuring.

"Now that the restructuring process is complete, XO is poised for continued growth," said Carl Icahn, the financier who now holds a controlling position in reorganized XO, and the company's new. "Now that it is no longer burdened by excessive debt, XO will continue to seek opportunities to grow its business, both through ongoing acquisitions of individual customers and through acquisitions of companies or assets, where appropriate. I believe the telecommunications sector continues to provide significant opportunities to acquire undervalued assets and customers and integrate them with XO's world-class operations and assets."

Entities controlled by Icahn currently hold more than eighty percent of the reorganized XO's common stock. The company's senior secured lenders and former bondholders and general unsecured creditors will hold the remaining outstanding common stock. Former bondholders and general unsecured creditors will also receive warrants to purchase shares of common stock representing an aggregate of 25 percent of the initially outstanding common stock of the reorganized XO.

Following its emergence from Chapter 11, XO will implement "Fresh Start" accounting provisions. The company's financial statements published following the implementation will not be comparable with prior periods.