================================================================= MCLEODUSA BANKRUPTCY NEWS Issue Number 1 ----------------------------------------------------------------- Copyright 2002 (ISSN XXXX-XXXX) February 1, 2002 ----------------------------------------------------------------- Bankruptcy Creditors' Service, Inc. 609-392-0900 FAX 609-392-0040 ----------------------------------------------------------------- MCLEODUSA BANKRUPTCY NEWS is published by Bankruptcy Creditors' Service, Inc., 24 Perdicaris Place, Trenton, New Jersey 08618, on an ad hoc basis (generally every 10 to 20 days) as significant activity occurs in the Debtor's case. Each issue is prepared by Peter A. Chapman, Editor. Subscription rate is US$45 per issue. Any re-mailing of MCLEODUSA BANKRUPTCY NEWS is prohibited. ================================================================= IN THIS ISSUE ------------- [00000] HOW TO SUBSCRIBE TO MCLEODUSA BANKRUPTCY NEWS [00001] BACKGROUND & DESCRIPTION OF MCLEODUSA INCORPORATED [00002] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING [00003] MCLEODUSA INCORPORATED CHAPTER 11 DATABASE [00004] LIST OF THE DEBTOR'S 20-LARGEST UNSECURED CREDITORS [00005] SUMARY OF MCLEODUSA'S PREPACKAGED PLAN OF REORGANIZATION KEY DATE CALENDAR ----------------- 01/31/02 Voluntary Petition Date 02/20/02 Deadline to provide Utilities with adequate assurance 03/02/02 Deadline for filing Schedules of Assets and Liabilities 03/02/02 Deadline for filing Statement of Financial Affairs 03/02/02 Deadline for filing Lists of Leases and Contracts 04/01/02 Deadline to make decisions about lease dispositions 05/01/02 Deadline to remove actions pursuant to F.R.B.P. 9027 05/31/02 Expiration of Debtor's Exclusive Plan Proposal Period 07/30/02 Expiration of Debtor's Exclusive Solicitation Period 01/30/04 Deadline for Debtor's Commencement of Avoidance Actions Organizational Meeting with UST to form Committees Bar Date for filing Proofs of Claim First Meeting of Creditors pursuant to 11 USC Sec. 341 ----------------------------------------------------------------- [00000] HOW TO SUBSCRIBE TO MCLEODUSA BANKRUPTCY NEWS ----------------------------------------------------------------- MCLEODUSA BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtor's case. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of MCLEODUSA BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. To continue receiving MCLEODUSA BANKRUPTCY NEWS, please complete the form below and return it by fax or e-mail to: Bankruptcy Creditors' Service, Inc. 24 Perdicaris Place Trenton, NJ 08618 Telephone (609) 392-0900 Fax (609) 392-0040 E-mail: peter@bankrupt.com We have published similar newsletters tracking billion-dollar insolvency proceedings since 1990, starting with Federated Department Stores. 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Name: ---------------------------------------------- Firm: ---------------------------------------------- Address: ---------------------------------------------- ---------------------------------------------- Phone: ---------------------------------------------- Fax: ---------------------------------------------- E-Mail: ---------------------------------------------- (Distribution to multiple professionals at the same firm is provided at no additional cost.) MCLEODUSA BANKRUPTCY NEWS is distributed to paying subscribers by electronic mail. New issues are published on an ad hoc basis as significant activity occurs (generally every 10 to 20 days) in the Debtor's case. The subscription rate is US$45 per issue. Newsletters are delivered via e-mail; invoices, transmitted following publication of each newsletter issue, arrive by fax. Re-mailing of MCLEODUSA BANKRUPTCY NEWS is prohibited. Distribution to multiple individuals at the same firm is provided at no additional charge; folks outside of your firm should set-up and pay for their own subscriptions. Subscriptions may be canceled at any time without further obligation. ----------------------------------------------------------------- [00001] BACKGROUND & DESCRIPTION OF MCLEODUSA INCORPORATED ----------------------------------------------------------------- McLeodUSA Incorporated McLeodUSA Technology Park 6400 C Street SW P.O. Box 3177 Cedar Rapids, Iowa 52406-3177 Telephone (319) 364-0000 Fax (319) 790-7767 http://www.mcleodusa.com McLeodUSA is one of the nation's largest independent competitive local exchange carriers. The company provides integrated communications services including local services in 25 Midwest, Southwest, Northwest and Rocky Mountain states. McLeodUSA is a facilities-based telecommunications provider with, as of January 24, 2002: * 31 ATM switches * 59 voice switches * 485 collocations * 525 DSLAMs * over 31,000 route miles of fiber optic network, and * more than 517,000 customers. McLeodUSA's headquarters are located in Cedar Rapids, Iowa, on 314 acres it owns and on which it has developed an office complex known as McLeodUSA Technology Park. Its headquarters buildings consist of a one-story, 160,000-square-foot office building used primarily by Pubco; a two-story, 320,000-square-foot office building which also houses telephone switching and computer equipment; a 36,000-square-foot maintenance building and warehouse and a 55,000 square-foot Pubco distribution facility. McLeodUSA also owns a 60,000-square-foot office building in Mattoon, Illinois, and a 55,000-square-foot office building in Sioux Falls, South Dakota. McLeodUSA also conducts business activities at many other locations, either leased or owned. These include facilities throughout the country used in connection with the construction and operation of its network, including over 400 POP sites as of December 31, 2000. Its locations also include 130 sales offices in its 25 state target markets as of December 31, 2000. McLeodUSA derives most of its revenue from its core competitive telecommunications and related communications services, including: * local and long distance services; * dial-up and dedicated Internet access services; * high speed Internet access services, such as services delivered using digital subscriber lines (DSL) and cable modems; * bandwidth leasing and collocation services; * facilities and services dedicated for a particular customer's use; and * value-added services such as virtual private networks and web hosting. McLeodUSA derives additional communications services revenues from other non-core, communications services: * telephone and computer sales, leasing, networking, service and installation; and * other communications services, including video, cellular, operator, payphone, mobile radio and paging services. McLeodUSA also derives revenue from services related to its core business: * sale of advertising in print and electronic telephone directories; and * traditional local telephone company services in east central Illinois and southeast South Dakota. For the three months ended September 30, 2001, McLeodUSA derived 79% of its total revenues from communications services (excluding traditional local telephone company services), 15% from its telephone directory business, 5% from traditional local telephone company services and 1% from other services. The New Strategy On September 28, 2001, McLeodUSA's Board of Directors approved a plan to revise its corporate strategy to focus primarily on providing voice and data services to small and medium size businesses and residential customers within its 25-state footprint. As a result McLeodUSA abandoned its plan for a national network and will de-emphasize certain wholesale services. In connection with this revised corporate strategy McLeodUSA has also decided to: * abandon the development of a national network and place the associated assets for sale and, in addition, sell other non-core assets and excess inventory; * reduce employment by approximately 15% and execute plans to consolidate certain existing facilities and eliminate certain others; * reduce capital expenditure plans for 2002 from $400 million to $350 million, primarily focused on completing current construction work-in-process, augmenting existing capacity where needed, and new customer requirements; As part of this revised corporate strategy, McLeodUSA has also established five cross-functional business process teams to strengthen business processes and bring improvements to its operations. These teams are focused on sales efficiencies, provisioning and customer installation, billing and revenue assurance, cash management and business forecasting and planning. ----------------------------------------------------------------- [00002] COMPANY'S PRESS RELEASE ANNOUNCING CHAPTER 11 FILING ----------------------------------------------------------------- McLeodUSA Reaches Agreement with Bondholder Committee Company Will Complete Previously Announced Recapitalization Plan to Reduce Total Debt by $3.3 Billion Through a Pre-Negotiated Chapter 11 Filing Plan Provides for No Disruption to Employees, Customers, Suppliers and Overall Operations CEDAR RAPIDS, Iowa --January 31, 2002 -- McLeodUSA Incorporated (Nasdaq:MCLD), one of the nation's largest independent competitive local exchange carriers, announced today that it has signed lock-up agreements with the ad hoc committee of holders of McLeodUSA senior notes ("bondholders") to support a recapitalization of the company. Under the terms of the recapitalization, the bondholders will receive up to $670 million in cash, $175 million of new preferred stock convertible into 15% of the reorganized Company's common stock, and 5-year warrants to purchase an additional 6% of the common stock for $30 million. The ad hoc committee, which holds 23% of the bonds, voted unanimously in favor of the plan, which will eliminate approximately $3.0 billion of bond debt. Additionally, the Company has signed lock-up and support agreements with stockholders holding approximately 45% of its Preferred Series A, Series D and Series E shares, including funds managed by Forstmann Little & Co., to support the recapitalization plan. In order to complete this recapitalization as expeditiously as possible, with the support of its Board of Directors, Secured Lenders, Forstmann Little, the bondholders' ad hoc committee and certain of its preferred stockholders, the Company today has filed a pre-negotiated plan of reorganization through a Chapter 11 bankruptcy petition filed in the United States Bankruptcy Court for the District of Delaware. The Chapter 11 case includes only the parent company, McLeodUSA Incorporated. None of the operating subsidiaries, which include McLeodUSA Telecommunications, McLeodUSA Publishing and Illinois Consolidated Telephone Company (ICTC), are part of the bankruptcy proceeding. The recapitalization plan remains consistent with the plan announced by the Company on December 3, 2001. The pre-negotiated elements of the transaction provide for no disruption to the Company's employees, trade creditors, customers and overall operations. The recapitalization is a key step in positioning McLeodUSA for the future by giving the Company a much improved capital structure. Specifically, under the terms of the proposed reorganization: -- Holders of the Company's senior notes will receive their pro rata share of a cash payment in an amount up to $670 million. This cash payment will be funded by: (a) $570 million of the $600 million of aggregate proceeds to be received from the Company's previously announced agreement for the sale of its directory publishing business to Yell Group (subject to a price reduction of $200,000 per day if the transaction closes after April 30, 2002, but prior to August 1, 2002); and (b) $100 million in cash from a new equity investment of $175 million by Forstmann Little. Bondholders will also receive their pro rata share of (x) $175 million of new convertible preferred stock which is convertible into common stock representing 15% of the reorganized McLeodUSA common stock and which carries a cumulative dividend of 2.5% per annum and (y) 5-year warrants to purchase an additional 6% of common stock for $30 million. -- The $175 million new equity investment in the Company by Forstmann Little will be in exchange for: (a) approximately 23% of the reorganized McLeodUSA common stock and (b) 5-year warrants to purchase an additional 6% of common stock for $30 million. -- Forstmann Little's Series D and Series E preferred stock will be converted into common stock, representing approximately 35% of the reorganized McLeodUSA common stock. -- The Company's Series A preferred stock will be converted into approximately 10% of the reorganized McLeodUSA common stock. -- Holders of the Company's existing Class A common stock are expected to retain approximately 17% of the shares of the reorganized McLeodUSA common stock. -- Forstmann Little will be the largest shareholder of McLeodUSA after the recapitalization with an approximate 58% stake in the Company. -- Theodore J. Forstmann, Senior Partner of Forstmann Little, will continue as Chairman of the Executive Committee of the McLeodUSA Board of Directors. -- Clark E. McLeod will remain Chairman of the McLeodUSA Board of Directors, Stephen C. Gray will remain President and Chief Executive Officer, and Chris A. Davis will remain Chief Operating and Financial Officer of the Company. During the bankruptcy proceedings, McLeodUSA expects to operate its business in the ordinary course without interruption and with no impact on its employees, customers and suppliers. The Company has approximately $140 million in cash currently available as of the date of the filing and has secured a commitment for a $110 million exit financing facility from a group of lenders arranged by JPMorgan, Bank of America and Citibank. This exit revolver may be increased to as much as $160 million and will be available to McLeodUSA at the completion of the recapitalization subject to customary conditions. Accordingly, based on such cash availability, the Company does not require and does not expect to obtain debtor-in-possession financing. The implementation of the pre-negotiated plan of reorganization is dependent upon a number of conditions typical in similar restructurings including, among other things, court approval of the pre-negotiated plan of reorganization and related solicitation materials. Additional terms and conditions of the reorganization plan will be outlined in a disclosure statement which will be sent to security holders entitled to vote on the plan of reorganization after it is approved by the Court. The Company expects the pre-negotiated plan of reorganization to be effective in the second quarter of 2002. In accordance with its policies, the Nasdaq Stock Market may delist the Company's common stock and Series A preferred stock as a result of the Company's filing under Chapter 11 of the U.S. Bankruptcy Code. The Company intends to have its new common stock and preferred stock listed on the Nasdaq Stock Market or another national securities exchange upon completion of the reorganization. As previously announced, the Company and its Secured Lenders amended their existing $1.3 billion senior secured credit facility to permit the use of proceeds from the sale of the publishing business to retire outstanding bond debt in connection with the plan. The Company and its Secured Lenders have also modified the credit agreement to allow the Company to retain and use the proceeds from all currently identified future asset sales of non-core businesses and surplus assets for general working capital purposes in addition to capital expenditures. Subject to the consummation of the plan of reorganization, the Company plans to eliminate $425 million of bank debt by: (1) a reduction of its current revolver commitment by $140 million, (2) a paydown of its term loan by $60 million ($35 million from the Forstmann Little investment and $25 million from the directory publishing proceeds), and (3) offer for sale its regulated incumbent local exchange subsidiary Illinois Consolidated Telephone Company (ICTC). The ICTC sale process is expected to begin after the completion of the recapitalization and occur within the subsequent 14 months, with up to $225 million of the proceeds applied to reduce the Company's term loans. ----------------------------------------------------------------- [00003] MCLEODUSA INCORPORATED CHAPTER 11 DATABASE ----------------------------------------------------------------- Debtor: McLeodUSA Incorporated Chapter 11 Petition Date: January 30, 2002 Court: United States Bankruptcy Court District of Delaware 824 Market Street, 5th Floor Wilmington, DE 19801 Telephone (302) 252-2900 Bankruptcy Case No.: 02-10288-MFW Bankruptcy Judge: The Honorable Mary F. Walrath Debtor's Counsel: David S. Kurtz, Esq. Peter C. Krupp, Esq. Seth E. Jacobson, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM 333 West Wacker Drive Chicago, Illinois 60606-1285 Telephone (312) 407-0700 Fax (312) 407-0411 - and - Gregg M. Galardi, Esq. Eric M. Davis, Esq. SKADDEN, ARPS, SLATE, MEAGHER & FLOM, LLP One Rodney Square P.O. Box 636 Wilmington, Delaware 19899-0636 Telephone (302) 651-3000 Fax (302) 651-3001 U.S. Trustee: United States Trustee for Region 3 844 King Street, Suite 2313 Lockbox 35 Wilmington, Delaware 19801-3519 Telephone (302) 573-6491 Fax (302) 573-6497 Debtor's Financial Advisor: Houlihan, Lokey, Howard & Zulkin Ad Hoc Noteholders' Committee's Counsel: Milbank, Tweed, Hadley & McCloy, LLP Ad Hoc Noteholders' Committee's Financial Advisor: Chanin Capital Partners LLC ----------------------------------------------------------------- [00004] LIST OF THE DEBTOR'S 20-LARGEST UNSECURED CREDITORS ----------------------------------------------------------------- Entity Nature of Claim Claim Amount ------ --------------- ------------ United States Trust Public Debt $799,765,625 Company of New York as Indenture Trustee for the 11 2/8% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $518,619,792 Company of New York as Indenture Trustee for the 8 1/8% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $495,850,024 Company of New York as Indenture Trustee for the 10 1/2% Senior Discount Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $307,125,000 Company of New York as Indenture Trustee for the 9 1/2% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $309,421,875 Company of New York as Indenture Trustee for the 8 3/8% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $236,273,437 Company of New York as Indenture Trustee for the 9 1/4% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $216,037,500 Company of New York as Indenture Trustee for the 11 1/2% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 United States Trust Public Debt $159,750,000 Company of New York as Indenture Trustee for the 12% Senior Notes 114 West 47th Street New York, NY 10036 Tel: 212 852 1000 Fax: 212 852 1626 Think Fast Consulting, Inc Trade Debt $148,310 Attention Debbie Santoria 8700 W. Bryn Mawr, Ste. 800N Chicago, IL 60631 Tel: 773 714 9999 Fax: 773 714 9998 Travel and Transport, Inc Trade Debt $100,000 Attention Teresa Fletcher 2699 Becky Thatcher Road Muscatine, IA 52761 Tel: 563 263 7439 Fax: 402 434 4048 IOS Capital Trade Debt $89,482 American Express Trade Debt $76,602 Allied Van Lines, Inc. Trade Debt $28,401 Ikon Office Solutions Trade Debt $18,629 Cedar Rapids Janitorial Trade Debt $16,739 Services Wells Fargo Financial Trade Debt $9,441 Leasing NPI Security Trade Debt $8,745 Xcel Energy Trade Debt $7,088 Tempe CC, LLC Trade Debt $6,098 Automated Maintenance Trade Debt $6,020 Systems, Inc. ----------------------------------------------------------------- [00005] SUMARY OF MCLEODUSA'S PREPACKAGED PLAN OF REORGANIZATION ----------------------------------------------------------------- McLeodUSA Incorporated proposes a Plan of Reorganization under chapter 11 of the U.S. Bankruptcy Code premised on continued operation of the Company's business, sales of non-core assets, and a $3 billion reduction of debt. Houlihan, Lokey, Howard & Zulkin estimates Reorganized McLeodUSA's equity value is $1,150,000,000. That valuation takes into account McLeodUSA's operating business, the expected present value of certain non-core assets and the estimated debt balances at and beyond an assumed April 30, 2002, Effective Date for the Plan, and gives further effect to the divestiture of McLeodUSA Media Group, Inc. (known as Pubco), on the Effective Date and to the divestiture of ICTC and McLeodUSA's South Dakota ILEC, CLEC and cable assets, assumed to occur within 14 months of the Effective Date. McLeodUSA provides its financial projections through 2005: McLeodUSA, Inc. Projected Consolidated Income Statement Unaudited (Dollars in Millions) 2001 2002 2003 2004 2005 ---- ---- ---- ---- ---- Revenues Communication services $1,408 $1,166 $1,110 $1,294 $1,536 Directory 303 108 0 0 0 Local exchange 108 88 0 0 0 ------ ------ ------ ------ ------ TOTAL REVENUES 1,819 1,362 1,110 1,294 1,536 Operating Expenses Cost of service 1,072 785 643 705 765 SG&A 665 441 356 376 394 Depreciation 620 599 513 532 554 Restructuring 2,955 45 0 0 0 ------ ------ ------ ------ ------ TOTAL OPERATING EXPENSES 5,312 1,871 1,511 1,614 1,713 OPERATING LOSS (3,493) (509) (401) (320) (178) Nonoperating Expenses Interest income 11 4 4 4 3 Interest expense (257) (101) (68) (72) (68) Other income 117 1,353 20 0 0 ------ ------ ------ ------ ------ NONOPERATING EXPENSE (130) 1,256 44 68 65 ------ ------ ------ ------ ------ NET INCOME (LOSS) ($3,623) $746 ($445) ($388) ($243) ====== ====== ====== ====== ====== Houlihan's valuation imputes a $3.47 price per share for the 325,000,000 shares of New Common Stock to be outstanding following the Effective Date, after giving effect to the potentially dilutive impact of the New Warrants, New Preferred Stock and the Management Incentive Plan. The Plan groups McLeodUSA's creditors and equity holders and details how those stakeholders claims and interests are treated: Class Description Treatment ----- ----------- --------- N/A Administrative Paid in full, in Cash, as Claims and and when due Professional Fees N/A Priority Tax Claims Paid in full, in Cash, as and when due 1 Senior Secured Reinstated on the Effective Date Lender Claims 2 Other Secured Claims Reinstated on the Effective Date 3 Non-Tax Priority Reinstated on the Effective Date Claims 4 General Unsecured Reinstated on the Effective Date Claims 5 Note Claims The Note Claims are Allowed Claims under the Plan in amounts to be agreed upon by McLeodUSA and the Note Trustee by the Effective Date. On or as soon as reasonably practicable after the Distribution Date, each holder of an Allowed Note Claim shall receive, in full satisfaction, release, and discharge of its Allowed Note Claim, its pro rata share of (A) $670,000,000 in Cash, subject to a reduction of $200,000 per day from May 1, 2002, through the earlier of: (1) the date of closing of the Pubco Stock Purchase Agreement or (2) August 1, 2002, plus (B) the New Series A Preferred Stock; plus (C) one-half of the New Warrants 6 Old Preferred Old Preferred Stock Interests are Stock Interests Allowed Interests under the Plan. On or as soon as reasonably practicable after the Distribution Date, (A) Holders of the Old Series A Preferred Stock shall receive, in full satisfaction, release, and discharge of their Allowed Old Series A Preferred Stock Interests, their pro rata share of 33,696,559 shares -- about 10.4% -- of the New Common Stock; (B) Holders of the Old Series D Preferred Stock shall receive, in full satisfaction, release, and discharge of their Allowed Old Series D Preferred Stock Interests, their pro rata share of 78,203,135 shares -- about 24.1% -- of the New Common Stock; and (C) Holders of the Series E Preferred Stock shall receive, in full satisfaction, release, and discharge of their Allowed Old Series E Preferred Stock Interests, their pro rata share of 35,546,879 shares -- about 10.9% -- of the New Common Stock, in each case subject to Dilution. 7 Class A Common Class 7 is impaired by the Plan and Stock Interests is deemed to reject the Plan. On or as soon as reasonably practicable after the Distribution Date, each Holder of an Allowed Class A Common Stock Interest shall share with the Holders of Claims in Class 8, in full satisfaction, release and discharge of their Allowed Class A Common Stock Interest, a pro rata share of approximately 54,775,662 shares -- about 16.9% -- of the New Common Stock, on a fully diluted basis. 8 Securities Claims Class 8 is impaired by the Plan and is deemed to reject the Plan. On or as soon as reasonably practicable after the Distribution Date, each Holder of an Allowed Securities Claim, if any, in full satisfaction, release and discharge of their Allowed Securities Claim, shall share with the Holders of Interests in Class 7, a pro rata share of approximately 54,775,662 shares -- about 16.9% -- of the New Common Stock, on a fully diluted basis. 9 Other Equity Cancelled on the Effective Date and Interests, including not entitled to any distribution. options, warrants, call rights, puts or other equity-related agreements The Debtor believes the Plan delivers greater value to stakeholders than they would receive in a liquidation of the estate. In a liquidation scenario, the Debtor estimates that its assets would convert to a $1,539,911,000 pile of cash. After payment of wind-down costs and fees for a trustee and other professionals, $1,128,801,000 would be available to pay secured claims. Secured creditors would eat-up $1,045,221,000, leaving $83,580,000 to satisfy unsecured claims totaling $3,393,366,000 -- or a 2.5% dividend to unsecured creditors. As of the Effective Date, the Plan provides that McLeodUSA McLeodUSA, Reorganized McLeodUSA, and Holders of Claims and Interests, will be deemed to forever release, waive and discharge all claims, obligations, suits, judgments, damages, demands, debts, rights, causes of action and liabilities will grant broad releases to (i) the current and former directors, officers and employees of McLeodUSA (other than for money borrowed from or owed to McLeodUSA or its subsidiaries by any such directors, officers or employees as set forth in McLeodUSA's books and records) and McLeodUSA's agents and professionals, (ii) the Senior Secured Lenders and the Bank Agents, (iii) any DIP Lenders and agent, (iv) Forstmann Little, and (v) the respective affiliates, and current and former officers, directors, employees, agents, members, shareholders, and professionals of the foregoing. *** End of Issue No. 1 *** ------------------------------------------------------------------------- Peter A. Chapman peter@bankrupt.com http://bankrupt.com ------------------------------------------------------------------------- Recommended Reading: Professor Stuart Gilson's newest title, "Creating Value Through Corporate Restructuring: Case Studies in Bankruptcies, Buyouts, and Breakups." List Price: $79.95 -- Discounted to $55.96 at http://amazon.com/exec/obidos/ASIN/0471405590/internetbankrupt -------------------------------------------------------------------------