Genuity to Seek Bankruptcy Protection

From Bloomberg News

Genuity Inc., a data-network operator that defaulted on $3 billion in loans, will seek bankruptcy protection and plans to sell most of its assets to Level 3 Communications Inc. for $240 million, people familiar with the matter said.

Genuity was unable to pay interest on $3.15 billion in loans after Verizon Communications Inc. opted not to buy back a stake in August. An announcement is expected this week, the people said.

Broomfield, Colo.-based Level 3 fell 6 cents to $5.19. Genuity fell 14 cents to 46 cents. Both trade on Nasdaq.