The debt-riddled company, which is being investigated by the SEC for its accounting procedures, is selling the QwestDex publishing business for $7bn to a company created by private equity firms The Carlyle Group and Welsh, Carson, Anderson & Stowe
Chief financial officer Oren Shaffer said restructuring Qwest’s bond debt was part of the restructuring plan.
According to Qwest’s new chief executive Richard Notebaert, the sale is one of many steps the voice, video and data services provider is undertaking to get its books out of the red.
He said: ‘The sale of QwestDex is a significant part of our plan to deliver and strengthen our balance sheet and will allow us to focus on maximising the profitability of our core operations.’
Last month the company, which is attempting to create a pan-European fibre optic IP network with Dutch counterpart KPN, revealed a $1bn error in its accounts and warned it could go bankrupt, following in the footsteps of sunk competitor WorldCom
Steve Absolom and Will Wright from KPMG Restructuring have been appointed joint administrators to City Motor Holdings and associated companies
Partners from Johnston Carmichael have been appointed as joint administrators to Axon Well Interventions Products UK
Begbies Traynor have been appointed administrators of William Anelay Ltd, York, one of Britain’s longest-established construction and heritage restoration companies
Smith & Williamson has been appointed administrators of charity 4Children