SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
____________________
FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(D) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported) September 22, 1999
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(September 21, 1999)
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ICG COMMUNICATIONS, INC.
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(Exact name of registrant as specified in charter)
Delaware 1-11965 84-1342022
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG HOLDINGS (CANADA) CO.
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(Exact name of registrant as specified in charter)
Nova Scotia 1-11052 Not Applicable
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG HOLDINGS, INC.
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(Exact name of registrant as specified in charter)
Colorado 33-96540 84-1158866
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
ICG FUNDING, LLC
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(Exact name of registrant as specified in charter)
Delaware 333-40495 84-1434980
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(State of Incorporation) (Commission (IRS Employer
File Number) Identification No.)
161 Inverness Drive West, Englewood, Colorado 80112
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(Address of principal executive offices)
Registrants' telephone numbers, including area codes (888) 424-
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1144 and (303) 414-5000
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<PAGE>
ITEM 5. OTHER EVENTS.
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In a press release dated September 21, 1999, ICG
Communications, Inc. ("ICG") announced that, based upon a
September 16, 1999 arbitration decision by the California
Public Utility Commission in a matter between Pacific Bell
and MFS/WorldCom, ICG believes that its third quarter results
of operations may include a provision of approximately $50
million for potentially uncollectible receivables from
tandem switching and common transport rate elements previously
billed to Regional Bell Operating Companies ("RBOCs"). A
copy of the press release is attached.
ITEM 7. Exhibits.
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(c) Exhibits
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99.1 Press Release, dated September 21, 1999.
<PAGE>
SIGNATURES
Pursuant to the requirements of the Securities Exchange
Act of 1934, the Registrants have duly caused this report to be
signed on their behalf by the undersigned hereunto duly
authorized.
Dated: September 21, 1999 ICG COMMUNICATIONS, INC.
By:/s/ H. Don Teague
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H. Don Teague
Executive Vice President,
General Counsel and Secretary
ICG HOLDINGS (CANADA) CO.
By: /s/ H. Don Teague
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H. Don Teague
Executive Vice President,
General Counsel and Secretary
ICG HOLDINGS, INC.
By: /s/ H. Don Teague
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H. Don Teague
Executive Vice President,
General Counsel and Secretary
ICG FUNDING, LLC
By: /s/ H. Don Teague
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H. Don Teague
Executive Vice President,
General Counsel and Secretary
<PAGE>
EXHIBIT INDEX
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Exhibits Description
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99.1 Press Release, dated September 21, 1999.
EXHIBIT 99.1
COMPANY PRESS RELEASE
CALIFORNIA PUBLIC UTILITIES COMMISSION RULES ON
RECIPROCAL COMPENSATION
ENGLEWOOD, Colo., Sept. 21, 1999--On September 16, 1999, the
California Public Utility Commission (CPUC) rendered a decision in the
arbitration of a new interconnection agreement between Pacific Bell and
MFS/WorldCom. In this case, the CPUC ruled only against competitive local
exchange carrier MFS's argument that it should be allowed to charge reciprocal
compensation rates for tandem switching and common transport while preserving
the end office element. In keeping with the FCC's February 1999 ruling, and
consistent with many other state public utility commissions, the CPUC
reaffirmed its interpretation of Internet service provider-bound traffic as
subject to reciprocal compensation end office switching rates.
Based on the CPUC's decision, ICG Communications, Inc., today announced it
believes the collection of certain receivables for tandem switching and common
transport rate elements previously billed to Regional Bell Operating Companies
may be uncollectible. Because some state regulators might adopt reasoning
similar to California, ICG has included receivables from other states.
Accordingly, ICG believes that its third quarter results may include a
provision of approximately $50 million for these potentially uncollectible
receivables which represent approximately 37 percent of ICG's cumulative
reciprocal compensation revenue through second quarter 1999. ICG will continue
to pursue collection of these receivables, despite any provision.
"Although we wish the decision would have included the transportion and tandem
rate elements of reciprocal compensation, we are pleased that the CPUC once
again validated that ISP-bound traffic is subject to end office switching
rates," said J. Shelby Bryan, chairman and chief executive officer of ICG.
"While we expect this recent decision to impact our reported 1999 financial
results, our 2000 business plan and associated revenue remain intact as our
2000 plan does not include any revenue from tandem switching and common
transport rate elements. We are on course to capture the enormous market
opportunities available in serving Internet service providers, business
customers and interexchange carriers through our highly valuable facilities-
based network."
About ICG Communications
With headquarters in Englewood, Colo., ICG Communications, Inc. (NASDAQ: ICGX)
is a competitive telecommunications provider of high-quality, integrated
communications solutions. ICG offers local, long distance and enhanced
telephony, and data communications to small- and medium-sized businesses in
California, Colorado, Ohio, Texas, and the Southeastern United States. The
company also provides high-speed data network capabilities and services to
Internet service providers throughout the United States, using ICG's
nationwide network. For further information on ICG, visit the company's Web
site at http://www.icgcom.com.
Information and statements contained in this press release contain, expressed
or implied, forward-looking disclosures that are based on the beliefs of
management as well as assumptions made based on information currently available
to management. These forward-looking statements and information involve risks
and uncertainty, including, but not limited to, future demand for the company's
services, general economic conditions, government regulations, competition and
customer strategies, capital deployment, the impact of pricing and other risks
and uncertainties. Should one or more of these risks materialize, or should
underlying assumptions prove incorrect, actual results may vary materially from
those described herein as anticipated, believed, estimated, or expected. These
risks are detailed from time to time in various reports filed by ICG with the
SEC, including Form 10-K filed by ICG for the fiscal year ended December 31,
1998, Forms 10-Q filed for the quarters ended March 31 and June 30, 1999.
Contact:
ICG Communications, Inc.
Kate Varden, 303/414-5388
(Vice President, Corporate Communications)
