World Access to File for Chapter 11 Protection

Apr 24, 2001, 01:00 ET from World Access, Inc.

    ATLANTA, April 24 /PRNewswire Interactive News Release/ --
 World Access, Inc. (Nasdaq: WAXS) announced today that its Board of Directors
 approved the filing of voluntary petitions for Chapter 11 relief in the United
 States Bankruptcy Court for the Northern District of Illinois, Eastern
 Division, on behalf of World Access and certain of its U.S. subsidiaries.  The
 Company expects to make the filings today.
     As previously announced, on April 4, 2001, three holders of World Access'
 13.25% Senior Notes due 2008 commenced an involuntary bankruptcy case against
 the Company, and the Company has been in discussions with the noteholders
 regarding a possible restructuring of the Company's obligations since before
 that filing.  In addition, on April 5, 2001, Deutsche Telekom disconnected
 circuits used by TelDaFax AG, which is 33% owned by World Access, effectively
 cutting off service to most of TelDaFax's German customers.  Although service
 was subsequently restored, World Access' management concluded that great harm
 had been caused to the commercial prospects of TelDaFax.  In light of the loss
 of TelDaFax's  commercial prospects and the inability to reach a resolution
 with the noteholders that does not involve remaining in bankruptcy, the
 Chapter 11 filing is being made in cooperation with the noteholders and
 effectively converts the involuntary case into a structure in which the
 Company's management will work with the noteholders to finalize a plan for the
 sale of the Company's operations.  World Access has engaged UBS Warburg to
 assist it in evaluating potential acquirers of the Company's various business
 units.
 
     About World Access
     World Access provides end-to-end international communication services over
 an advanced asynchronous transfer mode internal network that includes gateway
 and tandem switches, an extensive fiber network encompassing tens of millions
 of circuit miles and satellite facilities. For additional information
 regarding World Access, please refer to the Company's website at
 www.waxs.com .
     This press release may contain financial projections or other forward-
 looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; potential inability to identify, complete and integrate
 acquisitions; difficulties in expanding into new business activities; delays
 in new service offerings; the potential termination of certain service
 agreements or the inability to enter into additional service agreements; and
 other risks described in the Company's SEC filings, including the Company's
 Annual Report on Form 10-K for the year ended December 31, 1999, as amended,
 the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31,
 2000 and June 30, 2000, as amended, the Company's Quarterly Report on Form
 10-Q for the quarter ended September 30, 2000, and the Company's Registration
 Statements on Forms S-3  (No. 333-79097) and S-4 (No. 333-37750 and 333-
 44864), the Company's Report on Form 8-K dated February 21, 2001, and the
 Company's Report on Form 8-K dated March 28, 2001, all of which risks are
 incorporated by reference into this press release.
 
     CONTACT:  Investor Relations of World Access, 404-231-2025
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X20283674
 
 

SOURCE World Access, Inc.
    ATLANTA, April 24 /PRNewswire Interactive News Release/ --
 World Access, Inc. (Nasdaq: WAXS) announced today that its Board of Directors
 approved the filing of voluntary petitions for Chapter 11 relief in the United
 States Bankruptcy Court for the Northern District of Illinois, Eastern
 Division, on behalf of World Access and certain of its U.S. subsidiaries.  The
 Company expects to make the filings today.
     As previously announced, on April 4, 2001, three holders of World Access'
 13.25% Senior Notes due 2008 commenced an involuntary bankruptcy case against
 the Company, and the Company has been in discussions with the noteholders
 regarding a possible restructuring of the Company's obligations since before
 that filing.  In addition, on April 5, 2001, Deutsche Telekom disconnected
 circuits used by TelDaFax AG, which is 33% owned by World Access, effectively
 cutting off service to most of TelDaFax's German customers.  Although service
 was subsequently restored, World Access' management concluded that great harm
 had been caused to the commercial prospects of TelDaFax.  In light of the loss
 of TelDaFax's  commercial prospects and the inability to reach a resolution
 with the noteholders that does not involve remaining in bankruptcy, the
 Chapter 11 filing is being made in cooperation with the noteholders and
 effectively converts the involuntary case into a structure in which the
 Company's management will work with the noteholders to finalize a plan for the
 sale of the Company's operations.  World Access has engaged UBS Warburg to
 assist it in evaluating potential acquirers of the Company's various business
 units.
 
     About World Access
     World Access provides end-to-end international communication services over
 an advanced asynchronous transfer mode internal network that includes gateway
 and tandem switches, an extensive fiber network encompassing tens of millions
 of circuit miles and satellite facilities. For additional information
 regarding World Access, please refer to the Company's website at
 www.waxs.com .
     This press release may contain financial projections or other forward-
 looking statements made pursuant to the safe harbor provisions of the
 Securities Reform Act of 1995.  Such statements involve risks and
 uncertainties which may cause actual results to differ materially.  These
 risks include: inability to obtain adequate financing or financing on terms
 acceptable or favorable to the Company; inability to restructure existing debt
 obligations; potential inability to identify, complete and integrate
 acquisitions; difficulties in expanding into new business activities; delays
 in new service offerings; the potential termination of certain service
 agreements or the inability to enter into additional service agreements; and
 other risks described in the Company's SEC filings, including the Company's
 Annual Report on Form 10-K for the year ended December 31, 1999, as amended,
 the Company's Quarterly Reports on Form 10-Q for the quarters ended March 31,
 2000 and June 30, 2000, as amended, the Company's Quarterly Report on Form
 10-Q for the quarter ended September 30, 2000, and the Company's Registration
 Statements on Forms S-3  (No. 333-79097) and S-4 (No. 333-37750 and 333-
 44864), the Company's Report on Form 8-K dated February 21, 2001, and the
 Company's Report on Form 8-K dated March 28, 2001, all of which risks are
 incorporated by reference into this press release.
 
     CONTACT:  Investor Relations of World Access, 404-231-2025
 
                     MAKE YOUR OPINION COUNT -  Click Here
                http://tbutton.prnewswire.com/prn/11690X20283674
 
 SOURCE  World Access, Inc.

RELATED LINKS

http://www.waxs.com