Ntelos in Financial Trouble

Ntelos (nee Intelos, nee CFW, as in Clifton Forge Waynesboro Telephone Cooperative) failed to pay their interest payments, due yesterday, to bondholders. They were scheduled to pay $24.6MM, but failed to do so. Ntelos has 30 days before their creditors can take action. A year ago, they had $7.3MM in cash — now they’re down to just a hair over a half million. The company went from a small telephone co-op to a big wireless and Internet company beginning in the mid 90s, and they now provide services like paging, DSL, cable television, wireless Internet access, website hosting, and PCS in five states. The Washington Post has the story, and Ntelos has a relevant press release on their site. 02/20 Update: Looks like Standard & Poor’s has cut their credit rating, and Ntelos is closing a call center, selling the $8MM building, and moving 100 jobs, as a cost-cutting move. It’s not expected that many of the employees will move from the Portsmouth location to their Waynesboro or Daleville locations, because the pay is around $9/hour.

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