* Co to delist from TSX, apply for venture exchange listing
* Says not sufficiently capitalized for the growth
* Enters into forbearance agreement with debenture holders
April 21 Telecommunications network carrier
Phonetime Inc PHD.TO said its board set up a restructuring
committee and will begin talks with parties regarding the sale
or partnership of its retail division.
"The company is not sufficiently capitalized for the growth
it experienced over the last three years; this has put pressure
on the liquidity and internal processes at the company,"
interim Chief Executive Gary Clifford said in a statement.
Phonetime said it is voluntarily delisting from the Toronto
Stock Exchange to reduce listing costs and will be applying for
a listing on the Toronto Venture Exchange.
The company, which has been in violation of its bank
covenants under its senior loan facility since the fourth
quarter of 2008, said it has entered into a forbearance
agreement with certain debenture holders.
Phonetime provides long-distance services to major
telephone carriers globally and also sells phone cards through
retail outlets across Canada.
The company said it expects to file its restated financial
statements for 2007, 2008 and 2009 by May 15.
Shares of Phonetime were flat at 8 Canadian cents Wednesday
(Reporting by Bhaswati Mukhopadhyay in Bangalore; Editing by