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A bankruptcy court Wednesday approved a two-week credit extension for struggling telecom provider Teligent [TGNT]. The move will allow the Vienna, Va.-based broadband wireless carrier to continue operations while it reorganizes under Chapter 11-bankruptcy protection.

The company filed for bankruptcy last month after failing to come up with an additional $350 million in funding, thus violating the terms of an earlier credit agreement.

Teligent is one of many competitive local exchange carriers that have gone belly-up because of intense competition, cruel capital markets and a depressed stock performance. It laid off 800 workers last month.

After the current two-week extension, Teligent said it can then ask the courts for more funding to continue operations.

IDT [IDT], a deep-pocketed seller of calling cards and long-distance service, has taken over management of Teligent and plans to combine its assets with those of ICG Communications, in which IDT acquired a stake during bankruptcy-court proceedings last year. In April, IDT purchased a 33.7 percent interest in Teligent from AT&T's [T] Liberty Media unit. >TK

# posted by Medical Information : 2:06 AM