Convergent Communications Takes Steps to Preserve Cash

Apr 17, 2001, 01:00 ET from Convergent Communications, Inc.

    ENGLEWOOD, Colo., April 17 /PRNewswire/ -- Convergent Communications, Inc.
 today reported that it has taken aggressive steps to preserve its cash
 resources by reducing its workforce by approximately 400 employees.
     The company has been unsuccessful in its efforts to raise additional
 funding.  Consequently, there is a strong possibility that Convergent
 Communications, Inc. and its subsidiary Convergent Communications Services,
 Inc., will each seek Chapter 11 protection under the Bankruptcy Code in the
 very near future to accomplish a restructuring, sale, merger or other
 alternative.
     Convergent Capital Corporation is not expected to seek Chapter 11
 protection.
 
 

SOURCE Convergent Communications, Inc.
    ENGLEWOOD, Colo., April 17 /PRNewswire/ -- Convergent Communications, Inc.
 today reported that it has taken aggressive steps to preserve its cash
 resources by reducing its workforce by approximately 400 employees.
     The company has been unsuccessful in its efforts to raise additional
 funding.  Consequently, there is a strong possibility that Convergent
 Communications, Inc. and its subsidiary Convergent Communications Services,
 Inc., will each seek Chapter 11 protection under the Bankruptcy Code in the
 very near future to accomplish a restructuring, sale, merger or other
 alternative.
     Convergent Capital Corporation is not expected to seek Chapter 11
 protection.
 
 SOURCE  Convergent Communications, Inc.