Troubled telecom carrier McLeodUSA announced Wednesday that its founder and Chairman Clark McLeod will retire and that Chris Davis, the company's chief financial officer and chief operating officer since August, will assume the roles of chairman and CEO. Earlier this year, the company reached an agreement with investment firm Forstmann Little and other stakeholders to clean up its balance sheet.
McLeod announced last week that it had emerged from Chapter 11 bankruptcy protection. Forstmann has increased its stake in McLeod to 58 percent, and $3 billion of McLeod's debt and 87 percent of its annual interest payments, or $315 million, were eliminated. McLeod announced in January that it could not make interest payments on its bonds, and has sold some of its assets to raise cash. Forstmann is also involved in the bailout of ailing telecom carrier XO Communications.