3/13/97: FL representatives travel to Hartford to solicit investments from the State of Connecticut.
4/17/97: Connecticut agrees to commit a total of $200 million in FL’s Equity-VI partnership and MBO-VII partnership.
4/28/99: FL Equity-VI partnership agreement amended to permit non-control investments.
8/30/99: FL invests $1 billion in McLeodUSA Inc. for 12% stake.
12/8/99: FL invests $850 million in
Nextlink Communications Inc..
1/10/00: Nextlink announces plan to acquire Concentric Network Corp. for
5/23/00: FL invests additional $400 million in NextLink
9/25/00: NextLink is renamed XO Communications after Concentric acquisition is completed.
4/26/01: FL invests additional $250 million in XO Communications.
7/6/01: Moody’s lowers credit rating on both XO Communications and McLeodUSA below junk status.
8/1/01: Forstmann agrees to pump $100 million more into McLeodUSA for a 20% stake. Stops 3.5% coupon payments.
9/10/01: Newsweek cites XO and McLeodUSA investments in an article entitled “Dumb Deals 101.”
10/3/01: McLeodUSA cuts nearly 1,600 jobs.
11/28/01: FL and Telefonos de Mexico each invest $400 million into XO Communications. All previous FL investments in XO are rendered worthless.
12/1/01: FL plans to recap McLeodUSA with $100 million investment and $535 million purchase of company’s yellow pages business.
12/7/01: FL sends memo to LPs regarding XO Communications investments
1/22/02: Alternate private equity group buys yellow pages business.
1/31/02: McLeodUSA files for bankruptcy. FL invests an additional $175M for a 58% stake as part of recap.
1/31/02: Conn. Treasurer Nappier threatens to sue FL
2/25/02: Conn. files suit against FL