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) AUGUST 14, 2002
-------------
ATX COMMUNICATIONS, INC.
(Exact Name of Registrant as Specified in Charter)
Delaware 000-49899 13-4078506
(State or Other Jurisdiction (Commission (IRS Employer
of Incorporation) File Number) Identification No.)
110 East 59th Street, 26th Floor, New York, New York 10022
(Address of Principal Executive Offices) (Zip Code)
Registrant's Telephone Number, including area code (212) 906-8485
--------------
CORECOMM HOLDCO, INC.
---------------------
(Former Name or Former Address, if Changed Since Last Report)
ITEM 5. OTHER EVENTS
Telecommunications provider ATX Communications, Inc., said today that it has
demanded millions of dollars of credits from Verizon and that it will
aggresively pursue all legal remedies for improperly billed charges to which
it is entitled under its interconnection agreement and applicable law.
ITEM 7. FINANCIAL STATEMENTS AND EXHIBITS
Exhibits
99.1 Press release, issued August 14, 2002
SIGNATURES
Pursuant to the requirements of the Securities Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
ATX COMMUNICATIONS, INC.
(Registrant)
By: /s/ Michael A. Peterson
---------------------------------------
Name: Michael A. Peterson
Title: Executive Vice President -
Chief Operating Officer and
Chief Financial Officer
Dated: August 14, 2002
EXHIBIT INDEX
-------------
Exhibit
99.1 Press release, issued August 14, 2002
Exhibit 99.1
[ATX LOGO]
FOR MORE INFORMATION: Melissa Kaufman (800) 220-2892
mail: Melissa.Kaufman@atx.com www.atx.com
ATX DEMANDS MILLIONS OF DOLLARS IN CREDITS FROM VERIZON
Bala Cynwyd, PA - August 14, 2002 - Telecommunications provider ATX
Communications, Inc. (Nasdaq: COMM) said today that it has demanded millions of
dollars of credits from Verizon and that it will aggressively pursue all legal
remedies for improperly billed charges to which it is entitled under its
interconnection agreement and applicable law.
ATX, an integrated communications provider of telephony, Internet, and
high-speed data services to business and residential customers in the Midwest
and the Mid-Atlantic states, indicated that over the course of many months, it
has been attempting to negotiate a final resolution to many millions of dollars
of improper charges that have been billed by Verizon.
"Since the very first invoice we received from Verizon in 1998, Verizon has been
billing ATX millions of dollars in inappropriate charges and this illegal and
anti-competitive behavior is continuing today," said Thomas Gravina, ATX's
President and Chief Executive Officer. "Instead of correcting its billing and
back office support system failures to eliminate its performance problems, we
believe Verizon has opted to simply ignore them."
Over the past several years ATX has refused to pay Verizon for services that
have not been properly billed, services that have not been rendered or services
that otherwise have not met the standards set forth in the agreements between
the companies. To date, Verizon has refused to credit these disputed charges to
ATX. Through a series of events, the companies had agreed to attempt to resolve
these disputes without litigation, but those discussions were unproductive.
On August 1, 2002, ATX put Verizon on notice that it will aggressively pursue
all legal means to remedy what ATX believes has been Verizon's various breaches
of their agreements and other anti-competitive, fraudulent, and unlawful
conduct, including, but not limited to, relief under the federal antitrust
statutes. Following ATX's notice, Verizon filed a complaint on August 13, 2002
in the U.S. District Court for the District of Delaware against ATX and several
of its indirect, wholly owned subsidiaries seeking payment of amounts allegedly
owed to Verizon under various contracts. While ATX has not yet fully assessed
Verizon's complaint, ATX believes that it has meritorious defenses to the
complaint, and further, that the amounts owed are substantially less than the
amount claimed by Verizon.
"We have bent over backwards to settle these billing errors amicably with
Verizon," continued Gravina. "As a result of Verizon's refusal to properly honor
our claims, it is now apparent that those discussions were fruitless. ATX will
not stand by and let Verizon get away with violating its agreements and engaging
in other anti-competitive tactics."
- more -
ABOUT ATX
Founded in 1985, ATX Communications, Inc. is a facilities-based integrated
communications provider offering local exchange carrier and inter-exchange
carrier telephone, Internet, e-business, high-speed data, and wireless services
to business and residential customers in targeted markets throughout the
Mid-Atlantic and Midwest regions of the United States. ATX currently serves
approximately 400,000 business and residential customers. For more information
on ATX, please visit www.atx.com.
SAFE HARBOR STATEMENT UNDER THE PRIVATE SECURITIES LITIGATION REFORM ACT OF 1995
Certain statements contained in this press release may constitute
"forward-looking statements" as that term is defined under the Private
Securities Litigation Reform Act of 1995, which are usually identified by the
use of forward-looking words or phrases, including, "anticipates," "believes,"
"estimates," "expects," "intends," "positioned," "projects," "plans," "should,"
strategy," and "will" and similar expressions. Such forward-looking statements
involve assumptions, known and unknown risks, uncertainties and other factors
that may cause the actual results, performance or achievements of ATX or
industry results, to be materially different from those contemplated, projected,
forecasted, estimated or budgeted, whether expressed or implied, by such
forward-looking statements. In evaluating forward-looking statements, you should
consider the documents filed by ATX and CoreComm Limited with the Securities and
Exchange Commission, specifically the most recent reports which identify
important risk factors or other disclosure that could cause actual results to
differ from those contained in the forward-looking statements, as well as the
following: adverse developments in commercial disputes or legal proceedings,
including the pending and any future litigation with Verizon; adverse
developments with respect to ATX's liquidity or results of operations; ATX's
ability to fund and execute its business plan; changes in the outcome of future
events from the assumed outcome included by ATX in its significant accounting
policies; and ATX's ability to continue to design networks, install facilities,
obtain and maintain any required governmental licenses or approvals and finance
construction and development, all in a timely manner, at reasonable costs and on
satisfactory terms and conditions. The information contained in this press
release is a statement of ATX's present intention, belief or expectation and is
based upon, among other things, the existing regulatory environment, industry
conditions, market conditions and prices, the economy in general and ATX's
assumptions. You should not place undue reliance on the forward-looking
statements, which are not a guarantee of performance or results and are subject
to a number of risks and uncertainties, which are outside of ATX's control. The
cautionary statements contained or referred to in this press release should be
considered in connection with any subsequent written or oral forward-looking
statements and accompanying cautionary language that ATX or authorized persons
acting on its behalf may disseminate. ATX disclaims any intent or obligation to
update any forward-looking statements, whether as a result of changes in its
assumptions, plans, intentions or expectations, new information, future events
or otherwise, unless required by applicable law.
###