Fourth Amendment and Waiver to Credit Agreement among CCL Historical, Inc., ATX Communications, Inc., CoreComm Communications, Inc., Lenders, and JPMorgan Chase Bank (March 31, 2003)

Summary

This amendment modifies the existing Credit Agreement and Security Agreement among CCL Historical, Inc., ATX Communications, Inc., CoreComm Communications, Inc., the lenders, and JPMorgan Chase Bank. It temporarily waives certain financial covenants until January 31, 2004, and changes terms related to interest payments, loan conversions, and financial benchmarks such as minimum revenue, capital expenditures, and operating cash flow. The amendment also sets new deadlines and conditions for compliance, with all waivers expiring automatically on January 31, 2004.

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EX-10.8 8 y85088exv10w8.txt 4TH AMENDMENT AND WAIVER TO CREDIT AGREEMENT EXHIBIT 10.8 EXECUTION COPY FOURTH AMENDMENT AND WAIVER dated as of March 31, 2003 (this "Amendment"), to the Credit Agreement dated as of September 28, 2000, as amended and restated as of April 11, 2001, and amended by the First Amendment dated as of October 31, 2001, the Second Amendment dated as of December 14, 2001 and the Third Amendment dated as of March 29, 2002 (the "Credit Agreement") and the Security Agreement dated as of September 28, 2000 (the "Security Agreement") among CCL Historical, Inc., formerly named CoreComm Limited (the "Parent"), ATX Communications, Inc., formerly named CoreComm Holdco, Inc. ("CCI"), CoreComm Communications, Inc. (the "Borrower"), the lenders party thereto (the "Lenders") and JPMorgan Chase Bank, as administrative agent and collateral agent (in such capacity, the "Agent"). WHEREAS, the Borrower, CCI and the Parent have requested that the Lenders (such term and other capitalized terms used herein and not otherwise defined herein shall have the meanings assigned to such terms in the Credit Agreement) approve amendments to certain provisions of the Credit Agreement and waive certain provisions thereof; and WHEREAS, the undersigned Lenders are willing, on the terms and subject to the conditions set forth herein, to approve such amendments and waivers to the Credit Agreement; ACCORDINGLY, in consideration of the mutual agreements herein contained and other good and valuable consideration, the sufficiency and receipt of which are hereby acknowledged, the parties hereto agree as follows: 1. Waivers. Upon effectiveness of this Amendment in accordance with Section 6 hereof, each Lender hereby agrees to waive, until January 31, 2004, compliance by the Parent, CCI and the Borrower with the covenants set forth in Section 6.13, 6.19, 6.20, 6.21 and 6.22 of the Credit Agreement; provided, however, that such waiver shall automatically expire on January 31, 2004 with the same effect as if it had never been granted. 2. Amendment of Credit Agreement. Upon the effectiveness of this Amendment in accordance with Section 6 hereof, the Credit Agreement is hereby amended as follows: (a) Section 1.01 is amended by adding the following definitions in the appropriate alphabetical order: "Operating Cash Flow" means, for any period, Consolidated EBITDA for such period minus the aggregate amount of Capital Expenditures during such period. 2 "Payment Deferral Period" means the period from and including March 12, 2003, to and excluding February 2, 2004. (b) Section 2.09 of the Credit Agreement is amended by: (i) deleting the word "quarterly" in paragraph (a) thereof and replacing each reference to "December 31, 2003" in paragraph (a) with a reference to "February 2, 2004"; and (ii) replacing the reference to "December 31, 2003", in paragraph (c) thereof with a reference to "February 2, 2004". (c) Section 2.10(c) is amended by deleting the proviso thereto in its entirety. (d) Section 2.12(d) is amended to read in its entirety as follows: "(d) Accrued interest on each Loan shall be payable in arrears on each Interest Payment Date for such Loan and, in the case of Revolving Loans, upon termination of the Revolving Commitments; provided that (i) payment of accrued interest on each Loan that would otherwise be payable on an Interest Payment Date occurring during the Payment Deferral Period ("Deferred Interest") shall be deferred until February 2, 2004, on which date all such Deferred Interest shall be due and payable in full, (ii) all amounts of Deferred Interest shall bear interest on each day from the Interest Payment Date therefor referred to in clause (i) above until the date on which such Deferred Interest is paid at a rate per annum equal to the Alternate Base Rate plus 5.50%, and all such interest shall be due and payable on February 2, 2004, (iii) interest accrued pursuant to paragraph (c) of this Section shall be payable on demand, (iv) in the event of any repayment or prepayment of any Loan (other than a prepayment of an ABR Revolving Loan prior to the end of the Revolving Availability Period) or of any Deferred Interest, accrued interest on the principal amount or amount of Deferred Interest repaid or prepaid shall be payable on the date of such repayment or prepayment and (v) in the event of any conversion of any Eurodollar Loan prior to the end of the current Interest Period therefor accrued interest on such Loan shall be payable on the effective date of such conversion." (e) Section 2.12 is further amended by adding a new paragraph (f) thereto to read as follows: "(f) Notwithstanding the foregoing or any provision to the contrary in this Agreement, (i) all outstanding Eurodollar Loans shall automatically be (and be deemed to have been) converted to ABR Loans on and as of March 12, 2003, and all Loans shall bear interest on each day during the Payment Deferral Period at a rate per annum equal to the Alternate Base Rate plus 5.50%; provided, however, that the provisions of paragraph (c) shall not apply to any unpaid principal of or interest on Loans during the Payment Deferral Period and (ii) except for the Interest Payment Date occurring on March 12, 2003, the Interest Payment Dates for all Loans during the Payment Deferral Period will be the last day of each 3 calendar month, commencing with March 31, 2003, and concluding with January 31, 2004." (f) Sections 5.14, 5.16 and 5.18 of the Credit Agreement are deleted with the same effect as if such Sections had never been included in the Credit Agreement. (g) Section 6.09(a) is amended by deleting clause (iv) thereof in its entirety and the proviso to clause (ii) of Section 6.09(b) is amended to read as follows: "provided, that any payment of interest accruing (x) under the ATX Note shall be made only with common stock of CCI and (y) under CCI's 10.75% Convertible PIK Notes shall be made only in additional 10.75% Convertible PIK Notes or with common stock of CCI;" (h) Section 6.14 is amended to read in its entirety as follows: "SECTION 6.14. Minimum On-Net Access Lines. The Borrower, CCI and the Parent will not permit the number of On-Net Access Lines, on any date set forth below, to be less than the number indicated below for such date:
Minimum On-Net Date Access Lines ---- ------------ March 31, 2003 197,000 June 30, 2003 200,000 September 30, 2003 208,000 December 31, 2003 218,000"
(i) Section 6.15 is amended to read in its entirety as follows: "SECTION 6.15. Minimum Consolidated Service Revenue. The Borrower, CCI and the Parent will not permit Consolidated Service Revenue for any fiscal quarter ending on March 31, 2003, June 30, 2003, September 30, 2003, or December 31, 2003 to be less than $65,000,000." (j) Section 6.23 is amended to read in its entirety as follows: "SECTION 6.23. Maximum Capital Expenditures. The Borrower, CCI and the Parent will not permit Capital Expenditures of the Parent, CCI, the Borrower and the other Restricted Subsidiaries in either period of two consecutive fiscal quarters set forth below to exceed the amount set forth below opposite such period:
Period of Two Maximum Capital Fiscal Quarters Ending Expenditures - ---------------------- ------------ June 30, 2003 $ 5,198,000 December 31, 2003 5,212,000
4 ; provided, however, that the amount of Capital Expenditures in the period of two consecutive fiscal quarters ending December 31, 2003 permitted to be incurred pursuant to the table above shall be increased by an amount equal to the unused Capital Expenditures permitted pursuant to the table above for the period of two consecutive fiscal quarters ending June 30, 2003." (k) Article VI of the Credit Agreement is amended by adding a new Section 6.27 to read as follows: "SECTION 6.27. Minimum Operating Cash Flow. The Borrower, CCI and the Parent will not permit Operating Cash Flow for any fiscal quarter set forth below to be less than the amount set forth below opposite such period:
Fiscal Quarter Ending Minimum Operating Cash Flow - --------------------- --------------------------- March 31, 2003 $ (832,000) June 30, 2003 364,000 September 30, 2003 487,000 December 31, 2003 596,000
(l) Article VI of the Credit Agreement is amended by adding a new Section 6.28 to read as follows: "SECTION 6.28. Settlement of Claims. On and after March 31, 2003, the Borrower, CCI and the Parent will not, and will not cause or permit any Restricted Subsidiary to, make any payment or transfer any assets in payment, satisfaction, compromise or settlement of all or any portion of a Specified Claim in an aggregate cumulative amount with respect to any such Specified Claim in excess of $500,000 (any such assets transferred being valued at their fair market value for purposes of determining compliance with such limitation), unless, in each case, the Required Lenders have given their prior written consent to such payment or transfer. For purposes of the foregoing, the term "Specified Claim" means any claim asserted in any litigation or arbitration proceeding against the Borrower, CCI, the Parent or any Subsidiary that was pending on March 31, 2003, and any claim at any time asserted in any litigation or arbitration proceeding against any such Person relating to or in respect of the Convertible Notes or the 10.75% Convertible PIK Notes of CCI." (m) Article VII of the Credit Agreement is amended by (i) deleting clause (p) thereof and (ii) replacing the reference to "$2,000,000" in clause (k) thereof with a reference to "$500,000" and adding the following proviso at the end of clause (k): "provided, however, that the existing $1,080,000 judgment in favor of Easton Telecom shall not result in an Event of Default hereunder so long as no portion of any such judgment is paid and no attachment of or levy upon any assets of the Parent, CCI, the Borrower or any other Restricted Subsidiary having assets in excess of $20,000 is legally effected to enforce such judgment;" 5 3. Amendment of Security Agreement. Upon the effectiveness of this Amendment in accordance with Section 6 hereof, the Security Agreement is hereby amended as follows: (a) The definition of "Collateral" in Section 1.01 is hereby amended and restated in its entirety as follows: "Collateral" shall mean all (a) Accounts Receivable, (b) Documents, (c) Equipment, (d) General Intangibles, (e) Inventory, (f) cash and cash accounts (g) Investment Property, (h) any Proceeds, (i) all other assets, rights and interests that uniquely reflect or embody goodwill associated with the Trademarks and (j) all Commercial Tort Claims; provided that "Collateral" shall not include Excluded Assets. (b) Section 1.01 is amended by adding the following definition in the appropriate alphabetical order: "Commercial Tort Claims" shall mean any and all right, title and interest of any Grantor in any Commercial Tort Claim, including but not limited to claims that are the subject of pending litigation against Ameritech and certain of its affiliates (Ohio Bell Telephone d/b/a Ameritech vs. CoreComm Newco, Inc., C.A. No. 1:01CV02057 (N.D. Ohio, Eastern Division)) and Verizon Communications, Inc. and certain of its affiliates (Verizon Communications, Inc., et. al vs. ATX Communications, Inc., et al. C.A. No. 02-1374 (SLR) (D. Del)). The amendments to the Security Agreement effected hereby shall not, by implication or otherwise, affect any security interest in Commercial Tort Claims or General Intangibles existing under the Security Agreement prior to the effectiveness of this Amendment. 4. No Other Amendments or Waivers; Confidentiality. (a) Except as expressly amended and waived hereby, the provisions of the Credit Agreement and each other Loan Document are and shall remain in full force and effect. Nothing herein shall be deemed to entitle any Loan Party to a consent to, or a waiver, amendment, modification or other change of, any of the terms, conditions, obligations, covenants or agreements contained in the Credit Agreement or any Loan Document in similar or different circumstances. (b) The Borrower, CCI and the Parent will not, and will not permit any Subsidiary to, name or identify the Lenders in any press release, public communication or governmental filing made of or with respect to this Amendment or relating to the subject matter hereof (including pursuant to the filing of any signature pages hereto). The provisions of this paragraph (b) will be deemed a covenant under Article VI of the Credit Agreement the breach of which will result in an immediate Event of Default under Article VII of the Credit Agreement. 5. Representations and Warranties. After giving effect to this Amendment, each Loan Party hereby represents and warrants to the Agent and the Lenders that: (a) As of the date hereof, no Default or Event of Default has occurred and is continuing; 6 (b) Except as set forth in Exhibit A to this Amendment, all representations and warranties of each Loan Party set forth in the Loan Documents are true and correct in all material respects as of the date hereof, except to the extent that any representation or warranty relates to an earlier date (in which case such representation or warranty is true and correct in all material respects as of such earlier date); and (c) No fee or other compensation has been or will be paid to the Agent or any Lender (other than as set forth in this Amendment) that is in any way intended to compensate the Agent or such Lender for its agreement to the terms of this Amendment, and no contractual relationship currently exists or is contemplated between the Agent or any Lender and the Borrower (other than as set forth in this Amendment) that is in any way intended to compensate the Agent or such Lender for its agreement to the terms of this Amendment. 6. Conditions Precedent to Effectiveness. This Amendment shall become effective on the date on which each of the following conditions is satisfied (the "Effective Date"): (a) The Agent shall have received counterparts hereof duly executed and delivered by the Parent, CCI, the Borrower, each of the other Loan Parties, the Agent and each of the Lenders. (b) The Agent shall have received all fees and other amounts due and payable on or prior to the Effective Date, including reimbursement or payment of all out-of-pocket expenses (including fees, charges and disbursements of counsel) required to be reimbursed or paid by an Loan Party hereunder or under any Loan Document, in each case to the extent invoiced on or prior to the Effective Date. In the case of provisions relating to changes in interest rates, deferrals of interest payments and conversions of outstanding Loans to ABR Loans, this Amendment will be retroactively effective to the dates specified herein for such changes, deferrals and conversions. 7. Expenses. The Borrower agrees to reimburse the Agent for its out-of-pocket expenses in connection with this Amendment, including the fees, charges and disbursements of Cravath, Swaine & Moore and Wachtell Lipton Rosen & Katz, counsel for the Agent, and of FTI Consulting, Inc., advisor to the Agent. 8. Governing Law; Counterparts. (a) This Amendment shall be governed by and construed in accordance with the laws of the State of New York. (b) This Amendment may be executed by one or more of the parties to this Amendment on any number of separate counterparts, and all of such counterparts taken together shall be deemed to constitute one and the same instrument. This Amendment may be delivered by facsimile transmission of the signature pages hereof. EXHIBIT A TO FOURTH AMENDMENT These Schedules are intended to update, solely for purposes of the representations made in this Fourth Amendment, certain Schedules and certain representations and warranties in the Credit Agreement. SCHEDULE 3.04(b) Financial Condition; No Material Adverse Change Except for matters occurring prior to the Effective Date of the Fourth Amendment which have been disclosed to the Lenders or their representatives in writing prior to such date, there has been no material adverse change in the actual or prospective businesses, assets, operations or condition of the Parent, Borrower or other Restricted Subsidiaries, taken as a whole. SCHEDULE 3.05(c) Properties Set forth below is the address of each real property that is leased by the Parent (the Parent has no owned property), the Borrower or any other Restricted Subsidiary.
- -------------------------------------------------------------------------------------------------- PHYSICAL ADDRESS CITY STATE ZIP - -------------------------------------------------------------------------------------------------- Christina Executive Campus; 131 Continental Drive #303 Newark DE - -------------------------------------------------------------------------------------------------- 70 Hubbard St., Suite 410, 4th Floor Chicago IL 60610 - -------------------------------------------------------------------------------------------------- 65 East Wacker Place, Suite 400, Bsmt Room 150 Chicago IL 60601 - -------------------------------------------------------------------------------------------------- 225 West Ohio St Suite 200 Chicago IL 60610 - -------------------------------------------------------------------------------------------------- 225 West Ohio St Suite 250 Chicago IL 60610 - -------------------------------------------------------------------------------------------------- 6201 N. Winthrop, Suite 5, 6, 7, 8 / 6251 N. Winthrop, Suite 5 Indianapolis IN - -------------------------------------------------------------------------------------------------- 824 E. Tipton Street Seymour IN - -------------------------------------------------------------------------------------------------- Cormwell Center; 809 Gleneagles Crt #200 Towson MD 21286 - -------------------------------------------------------------------------------------------------- 451 D Street / 60-84 Fargo St Boston MA 02210 - -------------------------------------------------------------------------------------------------- 201 E. Seventeenth St., Suite B, Boardman View Terrance Traverse City MI - -------------------------------------------------------------------------------------------------- 4660 S. Hagadorn Suite 320 East Lansing MI 48823 - -------------------------------------------------------------------------------------------------- 2875 Eyde Parkway East Lansing MI - -------------------------------------------------------------------------------------------------- 325 E. Lake St. Units 21,23,24,27 & 29B Petoskey MI 49770 - -------------------------------------------------------------------------------------------------- West Main Arcade Suites 626 & 626A Oshtemo MI - -------------------------------------------------------------------------------------------------- 3625 W St. Joseph, Unit T31 Lansing MI 48917 - -------------------------------------------------------------------------------------------------- Plaza 9 Building; 900 Route 9 North Woodbridge NJ 8095 - -------------------------------------------------------------------------------------------------- Century Corp Center; 100 Century Pkwy, 1st floor Mount Laurel NJ 8054 - -------------------------------------------------------------------------------------------------- 518 Market St. Lower Level Camden NJ 8101 - -------------------------------------------------------------------------------------------------- 65 a.k.a 75 Broad Street, Entire 11th Floor New York NY 10004 - -------------------------------------------------------------------------------------------------- 5551 Far Hills Ave Dayton OH 45429 - -------------------------------------------------------------------------------------------------- 130 W. Second St. Suite 2200 Dayton OH 45402 - --------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------- 520 S. Main St. Building 24, Suite 2446 Akron OH 44311 - -------------------------------------------------------------------------------------------------- 344 West Fourth St. Cincinnati OH - -------------------------------------------------------------------------------------------------- 502 Coshocton Ave. Suite 102 Mt. Vernon OH 43050 - -------------------------------------------------------------------------------------------------- 1301 Summit St. Toledo OH 43604 - -------------------------------------------------------------------------------------------------- 27181 Euclid Ave Cleveland OH 44115 - -------------------------------------------------------------------------------------------------- 1621 Euclid Ave Cleveland OH 44115 - -------------------------------------------------------------------------------------------------- 350 West Wilson Bridge Rd Worthington OH - -------------------------------------------------------------------------------------------------- 450 West Wilson Bridge Rd, Suite 100, 120 & 150 Worthington OH - -------------------------------------------------------------------------------------------------- 6505 Rockside Rd Suite 400, 425 Independence OH 44131 - -------------------------------------------------------------------------------------------------- 535 to 579 Scherers Court Worthington OH 43085 - -------------------------------------------------------------------------------------------------- 191 West Nationwide Blvd., 4th Floor Columbus OH 44128 - -------------------------------------------------------------------------------------------------- 15166 Neo Parkway Garfield Hts OH 44128 - -------------------------------------------------------------------------------------------------- 50 Monument RD Bala Cynwyd PA 19004 - -------------------------------------------------------------------------------------------------- 401 City Ave Bala Cynwyd PA 19004 - -------------------------------------------------------------------------------------------------- Evergreen Center, 101 Erford Rd Camp Hill PA 17011 - -------------------------------------------------------------------------------------------------- One Presidential Blvd (2nd and 4th floors) Bala Cynwyd PA 19004 - -------------------------------------------------------------------------------------------------- 1275 Glenlivet Drive Ste 300 Allentown PA 18106 - -------------------------------------------------------------------------------------------------- 2401 Locust St Philadelphia PA 19103 - -------------------------------------------------------------------------------------------------- 1001 Village Run Rd Wexford PA 15090 - -------------------------------------------------------------------------------------------------- 401 North Broad St. Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 3400 West Chester Pike, Newtown Square, PA 19073 Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 200 S 24th St -- First Floor Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 201 S 24th St -- Fourth Floor Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 202 S 24th St -- Fifth Floor Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 203 S 24th St -- Sixth Floor Philadelphia PA 19108 - -------------------------------------------------------------------------------------------------- 8614 Westwood Center #600 Vienna VA 22182 - --------------------------------------------------------------------------------------------------
- -------------------------------------------------------------------------------------------------- 470 Spring Park Place, Suite 4 Herndon VA - -------------------------------------------------------------------------------------------------- 2105 S. 170th St New Berlin WI 53151 - -------------------------------------------------------------------------------------------------- 2120 S. Calhoun Rd. New Berlin WI 53151 - -------------------------------------------------------------------------------------------------- 2050 S. Calhoun Rd. New Berlin WI 53151 - --------------------------------------------------------------------------------------------------
SCHEDULE 3.06 Disclosed Matters Litigation Involving Claims for Damages against ATX Communications, Inc. and/or its Subsidiaries(1)
- --------------------------------------------------------------------------------------------------------------------------- (APPROXIMATE) AMOUNT AT CAPTION JURISDICTION ISSUE - --------------------------------------------------------------------------------------------------------------------------- Verizon Communications, Inc., et. U.S. District Court for the $22.6 million by Verizon; al. v. ATX Communications, Inc., et District of Delaware unspecified amounts in antritrust, al.; ATX Communications, Inc., et breach of contract and al v. Verizon Communications, Inc., misepresentation counterclaims by et al. ATX. - --------------------------------------------------------------------------------------------------------------------------- Ohio Bell Telephone d/b/a U.S. District Court for the $8 - 14.4 million; unspecified Ameritech vs. CoreComm Newco, Northern District of Ohio amounts in antitrust, breach of Inc.; CoreComm Newco, Inc., et al contract and misrepresentation v. Ameritech, et. al. counterclaims by Newco. - --------------------------------------------------------------------------------------------------------------------------- General Electric Capital Corporation Circuit Court, Cook $8 million plus return of v. Megsinet, Inc., CoreComm County, IL equipment Holdco, Inc. and CoreComm Limited - --------------------------------------------------------------------------------------------------------------------------- Michael Nelson v. CoreComm Circuit Court, Cook Limited, CoreComm Acquisition County, IL Sub, Inc., MegsInet, Inc., Michael Henry and Scott Widham - --------------------------------------------------------------------------------------------------------------------------- General Electric Capital Corporation Circuit Court, Cook Return of equipment v. MegsINet, Inc., CoreComm County, IL Holdco and CoreComm Limited Adverse Decision Rendered 9/24/02; equipment being returned; no material adverse effect on operations or financial condition - --------------------------------------------------------------------------------------------------------------------------- Easton Telecom Services, LLC v. U.S. District Court for the $1,085,000 million plus interest CoreComm Internet Group, Inc., Northern District of Ohio Voyager, Information Networks, Inc. and MegsINet, Inc. - --------------------------------------------------------------------------------------------------------------------------- KMC Telecom, Inc., KMC Telecom Supreme Court of New $2 million II, Inc., and KMC Telecom of York, New York County Virginia, Inc. v. CoreComm - ---------------------------------------------------------------------------------------------------------------------------
- ----------- 1 Litigation involving claims of less than $20,000 have been omitted. - --------------------------------------------------------------------------------------------------------------------------- Limited, Cellular Communications of Puerto Rico, Inc., CoreComm New York, Inc., and Megsinet, Inc. CoreComm Limited, et al. vs. Michael Henry, Scott Widham and Brian Clark - --------------------------------------------------------------------------------------------------------------------------- CoreComm Mass. Inc. v. Verizon Superior Court, Suffolk $1.1 million New England d/b/a Verizon Mass. County, Mass. - --------------------------------------------------------------------------------------------------------------------------- 3Com Corporation v. ATX Court of Common Pleas, $900,000 Communications, Inc. Montgomery County, PA Preliminary Objections pending - --------------------------------------------------------------------------------------------------------------------------- Focal Communications Corp. Of Ill., $802,687 PA, DE & NY v. ATX Communications, Inc., ATX Telecommunications Services, Inc. ATX Licensing, Inc. and CoreComm Communications, Inc. - --------------------------------------------------------------------------------------------------------------------------- ATX Telecommunications Services, Commonwealth Ct. of PA $631,429 Inc. v. Commonwealth of Pennsylvania, No. 340 F.R. 2002. (Appeal from PA Board of Finance and Revenue pending) - --------------------------------------------------------------------------------------------------------------------------- TJS v. ATX Telecom Services ADR Options $500,000 - --------------------------------------------------------------------------------------------------------------------------- Novelle v. CoreComm Limited and Circuit Court of Cook $472,442 MegsINet County, Ill - --------------------------------------------------------------------------------------------------------------------------- Enavis Networks, Inc. v. Circuit Court, Pinellas $419,843.53 CoreComm Limited County, FL - --------------------------------------------------------------------------------------------------------------------------- CIT Communications Finance Corp. Superior Court of New $360,279 v. Voyager Information Networks, Jersey Morris County Inc. - --------------------------------------------------------------------------------------------------------------------------- Information Complaint of APCC Federal Communications $300,000 to 350,000 Services, Inc. v. ATX Licensing, Commission Inc. - --------------------------------------------------------------------------------------------------------------------------- ATX Telecom. Services v. BAB Court of Common Pleas, Action by CoreComm for $95,000 Bucks County, PA in unpaid bills; counterclaims by BAB v. ATX Telecom. Services BAB for $275,000 in alleged lost profits - ---------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------- Sunrise Leasing Corporation as Chicago, Illinois $258,271.43 Assignee of Sun Microsystems Finance v. Megsinet, Inc. - --------------------------------------------------------------------------------------------------------------------------- Corporate Interiors of Delaware v. Court of Common Pleas, $209,900.91 ATX Telecommunications Services Montgomery County, PA - --------------------------------------------------------------------------------------------------------------------------- Paradyne Corp. v. CoreComm Court of Common Pleas, $171,845.21 Cuyahoga County, OH (CoreComm Newco has been identified as proper defendant) - --------------------------------------------------------------------------------------------------------------------------- Shared Telecom v. Voyager and Superior Court, Marion $169,009.28 Net Direct County, IN - --------------------------------------------------------------------------------------------------------------------------- GATX Technologies, Inc. v. Thirteenth Judicial Circuit, $150,000 CoreComm Voyager Inc. FLA - --------------------------------------------------------------------------------------------------------------------------- BVFU Funding, LLC v. MegsINet, Massachusetts Superior $105,330 Inc, Michael Henry and Patrick Court Henry - --------------------------------------------------------------------------------------------------------------------------- Tierney & Partners, Inc. v. ATX Court of Common Pleas, $104, 431.21 Telecommunications Services Montgomery County PA - --------------------------------------------------------------------------------------------------------------------------- Fresh Start Industries, Inc. v. ATX U.S. District Court, In excess of $100,000; Telecommunications Services, Inc. Eastern District of PA counterclaims by ATX in excess of $60,000 (predecessor in interest to CoreComm-ATX, Inc.) - --------------------------------------------------------------------------------------------------------------------------- R.H. Welf & Associates, Inc. v. Court of Common Pleas, In excess of $100,000 CoreComm Services, Inc. Cuyahoga County, OH RHWelf Demand: $20,000 CoreComm Offer: $5000 - --------------------------------------------------------------------------------------------------------------------------- Romanoff Electric v. CoreComm Court of Common Pleas, $80,000 Columbus OH - --------------------------------------------------------------------------------------------------------------------------- Jackson Construction Company v. Superior Court, Suffolk $72,731.66 CoreComm Communications, Inc. County, MA - --------------------------------------------------------------------------------------------------------------------------- Eastrich No. 167 v. Metler Toledo v. Franklin County, Ohio $70,000 CoreComm Newco, Inc. - --------------------------------------------------------------------------------------------------------------------------- Lindley Electric Supply v. ATX Court of Common Please, In excess of $50,000 Telecommunications Services, Inc. Bucks County PA - --------------------------------------------------------------------------------------------------------------------------- Eric Bobo v. ATX Court of Common Pleas, $50,000 salary demand + - ---------------------------------------------------------------------------------------------------------------------------
- --------------------------------------------------------------------------------------------------------------------------- Telecommunications Services, Inc. Montgomery County 6524 shares of stock claimed due - --------------------------------------------------------------------------------------------------------------------------- Citicorp Vendor Finance, Inc. f/k/a Supreme Court, New In excess of $40,000 Copeland Capital, Inc. v CoreComm York, New York Limited (CitiCorp settlement demand of $23,000 + return of the equipment). - --------------------------------------------------------------------------------------------------------------------------- Tasman v. ATX Philadelphia County Court $50,000 of Common Pleas - --------------------------------------------------------------------------------------------------------------------------- Full Service Computing v. Court of Common Pleas, $25,000.00 CoreComm-ATX, Inc. Allegheny County, PA - --------------------------------------------------------------------------------------------------------------------------- Crescent Public Communications v. U.S. Bankruptcy Court, Approx. ATX Telecom. Services Southern District of New York $20,000.00 - ---------------------------------------------------------------------------------------------------------------------------
SCHEDULE 3.12 Subsidiaries Set forth below are the names, and the ownership interest, of the Parent, CCI and the Borrower in each subsidiary of the Parent and CCI, along with the names of each Subsidiary that is a Subsidiary Loan Party.
- ------------------------------------------------------------------------------------------------------------------------ AUTHORIZED ISSUED SUBSIDIARY COMMON COMMON PAR VALUE CURRENT HOLDER - ------------------------------------------------------------------------------------------------------------------------ ATX Licensing, Inc. 100 10 $ 0.01 Corecomm-ATX, Inc. - ------------------------------------------------------------------------------------------------------------------------ ATX Telecommunications of Virginia, LLC. N/A N/A N/A ATX Licensing, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm California, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Communications, Inc. 1,500 1,500 $.01 Par ATX Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Illinois, Inc 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Indiana, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Internet Group, Inc. 1,500 1,500 No Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Maryland, Inc. 1,000 1,000 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Massachusetts, Inc. 1,000 1,000 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Michigan, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Missouri, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm New Jersey, Inc. 1,000 1,000 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm New York, Inc. 100 100 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Newco, Inc. 1,500 1,500 No Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Ohio, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Oregon, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Pennsylvania, Inc. 1,000 1,000 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Rhode Island, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Services, LLC (formerly, CoreComm Services, Inc.) N/A N/A N/A Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------
- ------------------------------------------------------------------------------------------------------------------------ CoreComm Vermont, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm West Virginia, Inc. 1,000 1,000 $.01 Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm Wisconsin, Inc. 1,500 1,500 No Par Corecomm Newco, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm-ATX, Inc 1,500 1,500 $.01 Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ CoreComm-Voyager, Inc 1,500 1,500 $.01 Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ Cortelyou Communications, Corp. 1,500 1,500 No Par FCC Holdco I, Inc. - ------------------------------------------------------------------------------------------------------------------------ Digicom, Inc. 750 200 No Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ FCC Holdco I, Inc. 1,500 1,500 No Par Corecomm Communications, Inc. - ------------------------------------------------------------------------------------------------------------------------ Fiberstream of New York, Inc. 100 100 No Par CCL Historical, Inc. - ------------------------------------------------------------------------------------------------------------------------ Fiberstream, Inc.. 100 100 No Par CCL Historical, Inc. - ------------------------------------------------------------------------------------------------------------------------ Horizon Telecommunications, Inc. 1,000 1,000 No Par Voyager Information Networks, Inc. - ------------------------------------------------------------------------------------------------------------------------ MegsINet Internet, Inc. (formerly, MegsINet, Inc.) 1,500 1,500 $.01 Par Corecomm Internet Group, Inc. - ------------------------------------------------------------------------------------------------------------------------ Voyager Data Services, Inc 850 800 $.01 Par Corecomm-Voyager, Inc. - ------------------------------------------------------------------------------------------------------------------------ Voyager Information Networks, Inc. 3,000,000 787,819 $.0001 Par Corecomm-Voyager, Inc. - ------------------------------------------------------------------------------------------------------------------------
SCHEDULE 3.13 Description of Insurance Set forth below is a description of all material insurance maintained by or on behalf of the Parent, the Borrower and the Restricted Subsidiaries. SCHEDULE OF INSURANCE Date: March 31, 2003 ASSURED: ATX COMMUNICATIONS, INC. AND SUBSIDIARIES 50 Monument Road Bala Cynwyd, PA 19004
- -------------------------------------------------------------------------------------------------------------------------------- INSURANCE POLICY POLICY NO. COMPANY PERIOD LIMITS DESCRIPTION OF COVERAGE - -------------------------------------------------------------------------------------------------------------------------------- 486407237 Atlantic Mutual 06/01/02- Commercial Package Policy 06/01/03 Locations: As on file with insurance company Property All Risk; Replacement Cost Exposure $ 25,000,000 Blanket Building, Personal Property, EDP and media $170,856,000 Any One Location $ 1,000 Deductible (Windstorm Ded. = 2%) $ 1,000,000 Flood ($25,000 deductible) $ 1,000,000 Earthquake (5% deductible) $25,000,000 $ 10,000,000 Blanket Business Interruption (36 Hour Ded.) $ 1,000,000 Boiler & Machinery Inland Marine $600,000 $ 600,000 Transit Coverage($500 deductible) Per Shipment $ 100,000 Business Income - Stock in Transit $275.357 $ 45,000 Equipment Floater ($500 deductible) Per Vehicle Accounts Receivable; Valuable Papers and Record; Fine Arts; Outside Sign; Salesman's Floater; and R&D $ 25,000 Coverages Crime $ 500,000 Employee Dishonesty ($1,000 deductible) $ 500,000 Depositors Forgery ($1,000 deductible) Money & Securities (In & Out) $ 30,000 Includes Phone Cards ($1,000 deductible) Exposure General Liability $42,000,000 $ 2,000,000 General Aggregate Payroll $ 1,000,000 Each Occurrence $ 1,000,000 Personal/Advertising Injury $84,000,000 $ 2,000,000 Products/Completed Operations Sales $ 100,000 Fire Damage Legal Liability $ 10,000 Medical Payments Ohio Stop Gap
Employee Benefits Liability Claims Made Form $ 1,000,000 Each Occurrence $ 2,000,000 Annual Aggregate $ 1,000 Deductible 104 vehicles Automobile $ 1,000,000 Liability $ 5,000 Medical Payment $ 1,000,000 Uninsured Motoris $ 500 Comprehensive Deductible $ 500 Collision Deductible $25 Each Day Rental Reimbursement $ 750 Maximum $ 25,000 Hired Car Physical Damage Umbrella $ 25,000,000 Each Occurrence $ 25,000,000 Annual Aggregate $ 10,000 Retention Global Endorsements Excess Liability Policy: 3SR130243-02 Kemper 06/01/02 - $ 25,000,000 Each Occurrence 06/01/03 excess of $25,000,000 $ 25,000,000 Aggregate $ 2,500 $25,000,000 401550938 Atlantic Mutual 09/01/02 - Worker's Compensation & Employer's Liability 09/01/03 Statutory Workers Compensation Limits Employer's Liability $ 500,000 BI by Accident/Each Accident $ 500,000 BI by Disease/Each Employee $ 500,000 BI by Disease/Policy Limit 16886-002 Guardian Life 07/01/99 - Disability Benefits (New York) Continuous Statutory Short Term NY State Disability GO449100 Gulf Insurance 05/9/02 - CyberLiability Plus Policy 05/9/03 $ 1,000,000 Each Claim $ 1,000,000 Annual Aggregate $ 25,000 Deductible Directors & Officers Liability Program ###-###-#### National Union 09/01/02 - Directors & Officers Liability 09/01/03 $ 10,000,000 Aggregate Limit of Liability $ 750,000 Retention - Securities Claims $ 750,000 Retention - Employment Practices Claims $ 750,000 Retention - All Other Claims GA4635915 Gulf Ins. 09/01/02 - Excess Directors & Officers Liability 09/01/03 (Excess of $10,000,000) $ 5,000,000 Aggregate Limit of Liability