Convergent Communications Still Seeking Funding; Anticipating Nasdaq SmallCap Delisting

Apr 04, 2001, 01:00 ET from Convergent Communications, Inc.

    ENGLEWOOD, Colo., April 4 /PRNewswire/ -- Convergent Communications, Inc.
 (Nasdaq: CONV), today reported that it has been unable to secure new
 financing, although it continues to seek funding for its $60 to $70 million
 cash shortfall.  Additionally, the company will terminate its secured
 working-capital credit facility with Foothill Capital as a result of the
 company's ineligibility to borrow under the facility, and in an effort to save
 costs associated with the non-use of this facility.
     Deteriorating conditions in the capital markets and the continued
 devaluation in the telecom sector are making it increasingly less likely that
 the company will be able to secure the financing necessary to continue
 operations at present levels.  The company continues to evaluate and pursue
 all other viable options at this time.
     Convergent Communications, Inc. also announced the resignations of
 Clifford G. Rudolph and Richard G. Tomlinson from the company's Board of
 Directors.  Both stated that they felt they could not continue to contribute
 to the company in light of the company's current funding situation.
     Additionally, the company reported that it has not regained compliance
 with the Nasdaq SmallCap listing requirements.  As a result, the company
 anticipates that it will be delisted from Nasdaq SmallCap in the very near
 future.
 
     The statements made by Convergent Communications in this press release may
 be forward-looking in nature.  Forward-looking statements in this news release
 are expectations, not historical facts.  Such statements are subject to risks
 and uncertainties that could cause actual results or outcomes to differ
 materially.  The company's existing debt and preferred stock obligations also
 create financial and operating risks and there can be no assurance that the
 company can satisfy its debt or preferred stock covenants or be able to obtain
 adequate financing to fund future initiatives.  Such risks and uncertainties
 also include other factors discussed in the company's filings with the
 Securities and Exchange Commission.
 
 

SOURCE Convergent Communications, Inc.
    ENGLEWOOD, Colo., April 4 /PRNewswire/ -- Convergent Communications, Inc.
 (Nasdaq: CONV), today reported that it has been unable to secure new
 financing, although it continues to seek funding for its $60 to $70 million
 cash shortfall.  Additionally, the company will terminate its secured
 working-capital credit facility with Foothill Capital as a result of the
 company's ineligibility to borrow under the facility, and in an effort to save
 costs associated with the non-use of this facility.
     Deteriorating conditions in the capital markets and the continued
 devaluation in the telecom sector are making it increasingly less likely that
 the company will be able to secure the financing necessary to continue
 operations at present levels.  The company continues to evaluate and pursue
 all other viable options at this time.
     Convergent Communications, Inc. also announced the resignations of
 Clifford G. Rudolph and Richard G. Tomlinson from the company's Board of
 Directors.  Both stated that they felt they could not continue to contribute
 to the company in light of the company's current funding situation.
     Additionally, the company reported that it has not regained compliance
 with the Nasdaq SmallCap listing requirements.  As a result, the company
 anticipates that it will be delisted from Nasdaq SmallCap in the very near
 future.
 
     The statements made by Convergent Communications in this press release may
 be forward-looking in nature.  Forward-looking statements in this news release
 are expectations, not historical facts.  Such statements are subject to risks
 and uncertainties that could cause actual results or outcomes to differ
 materially.  The company's existing debt and preferred stock obligations also
 create financial and operating risks and there can be no assurance that the
 company can satisfy its debt or preferred stock covenants or be able to obtain
 adequate financing to fund future initiatives.  Such risks and uncertainties
 also include other factors discussed in the company's filings with the
 Securities and Exchange Commission.
 
 SOURCE  Convergent Communications, Inc.