Rodent Regatta

Business Week has an article about Level 3 and an interview with Jim Crowe, the company’s CEO.

One interesting quote:

”Cohan has expressed fears that Level 3 could at some point face the tough choice of either a bankruptcy filing or turning control over to creditors, a fate that overtook another high-flying wholesale telecom provider, Williams Communication Group last spring.

Level 3 stated in its latest report that it remained in compliance with all loan covenants. But Cohan wonders why it hasn’t published the particulars of those covenants—a step he believes would be useful for inquiring investors. Level 3 says it did in fact publish those particulars last August but hasn’t done so since.”

If this buy Cohan would do his homework he discover just who the creditors of Level 3 are. Bonds have been bought in a big way by the likes of Warren Buffett, Walter Scott (the company’s chairman and a member of Buffett’s board), Legg Mason and Longleaf. These are parties who have an interest in seeing the company flourish. They are not ”take-over” artists.