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INTELLICALL ANNOUNCES ITS LENDERS HAVE TEMPORARILY WAIVED ALL COVENANT VIOLATIONS

 INTELLICALL ANNOUNCES ITS LENDERS HAVE TEMPORARILY WAIVED
 ALL COVENANT VIOLATIONS
 DALLAS, March 16 /PRNewswire/ -- Intellicall, Inc. (NYSE: ICL), announced today that its lenders have temporarily waived all covenant violations under the company's banking line of credit and senior note and that its banking lenders have temporarily waived the effects of a subjective acceleration clause in the company's line of credit agreement. The company had previously announced that it was in default under the loan agreements due to the covenant violations.
 The waivers are effective through March 31, 1992. The company is engaged in discussions with its lenders seeking to obtain permanent waivers of the covenant violations and to amend the agreements to provide for mutually acceptable terms and conditions. Although there can be no assurances, the company believes that the amendments will be completed prior to March 31, 1992, and that the previous violations will not have a materially adverse effect on its financial condition and results of operations. The company anticipates that it will be required to pay a fee to its lenders as consideration for the amendments.
 The company also announced that its board of directors met on March 14, 1992, and authorized its audit committee to initiate an inquiry into the company's failure to make timely disclosure of these matters.
 The company's covenant violations are not merely technical in nature. As described in its March 13, 1992, press release, the company breached several ratios relating to its financial condition.
 Intellicall, Inc., is a diversified telecommunications company providing innovative technology and services to private pay telephone networks throughout the United States, and is the nation's largest manufacturer of privately owned pay telephones, automated pay telephone systems and call processing systems.
 -0- 3/16/92
 /CONTACT: Jody Kendrick or Larry Meltzer of Meltzer & Martin Public Relations, 214-953-0808, for Intellicall; or Thomas A. Floerchinger, senior vice president and chief financial officer of Intellicall, 214-416-0022, ext. 149/
 (ICL) CO: Intellicall, Inc. ST: Texas IN: TLS SU:


GK -- NY015 -- 8121 03/16/92 08:39 EST
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Publication:PR Newswire
Date:Mar 16, 1992
Words:334
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