XO Communications said Tuesday that its lenders have given it more time on its loans as the carrier continues to seek stable footing. The company said its creditors agreed to not seek payment for loans as long as "satisfactory progress" is being made in its efforts to restructure its balance sheet and search for buyers. The Reston, Va.-based company has received offers from two groups of potential buyers during the past few months. XO said it is making progress in negotiations with an investment group led by financier Carl Icahn that offered to purchase a 50 percent equity stake in the carrier for $500 million.
The carrier also added that it still intended to adhere to an agreement with investment firm Forstmann Little and Telefonos de Mexico, a major Mexican telecommunications carrier. XO's board approved alast November that would give the two a combined 80 percent stake in XO in exchange for an $800 million investment.