RESTON, Va. - XO Communications Inc. Chairman Daniel F. Akerson will resign after the seller of business phone and Internet services emerges from bankruptcy, allowing financier Carl Icahn to pick a new leader.
Akerson, who has been XO's chairman and chief executive officer since September 1999, wants to "pursue other business interests and spend more time with his family," XO said in a statement.
The company didn't say who would replace Akerson, who plans to work with XO as a consultant after the restructuring.
XO's reorganization plan, approved last month by a bankruptcy judge, gives Icahn-controlled entities 80 percent ownership in the company. The plan needs federal and state regulatory approvals, which are expected next month, XO spokeswoman Kara Palamaras said. Icahn had wanted Akerson to stay, she said.
XO sought bankruptcy protection in June amid waning demand for phone and Internet services and a glut of supply, joining telecommunications companies such as Global Crossing Ltd., Williams Communications Group Inc. and Metromedia Fiber Network Inc.
XO, formerly known as Nextlink Communications Inc., was founded in 1994 by cell phone pioneer Craig McCaw.
The company said last month that it has cut spending on network construction and operations.
XO offers telephone service, online access, high-speed corporate-network connections and corporate Web site operations, according to its Internet site.
Akerson, 54, was CEO of Nextel Communications Inc. from 1996 to July 1999, when he became co-chairman and an investor in McCaw's Eagle River Inc. investment company.
Before joining Nextel, he held various executive positions at MCI Communications Corp., which was acquired by WorldCom Inc. in 1998.
WorldCom, the second-biggest U.S. long-distance carrier, filed the largest-ever U.S. bankruptcy case in July after disclosing it hid $3.85 billion in expenses.
Shares of XO inched up 0.002 cents to close at 6 cents yesterday in over-the-counter Bulletin Board trading.
Akerson and Icahn didn't immediately return telephone calls seeking comment yesterday.