Level 3, the heavily indebted US telecom group, is in danger of breaching covenants on a $1.8bn (€2.1bn) bank loan in the latest upset to rock the telecoms sector.
Sureel Choksi, chief financial officer of Level 3, said: "Recognizing that there is a risk we may violate a financial covenant later this year, we have initiated discussions with the administrative agent for our credit facility to find an appropriate solution prior to any potential covenant violation."
