Qwest ( Q) plunged for the sixth day running Friday, as the company's plan to boost liquidity failed to solidify investor confidence.
After the market closed Thursday, Qwest told Wall Street it had drawn down its entire $4 billion bank credit line because it was unable to roll over some commercial paper obligations. The company also outlined capital spending cuts and asset sales that it said would keep it liquid until it turns cash-flow positive in the second quarter. Revenue and cash flow at Qwest, which is burdened by some $25 billion in debt, have been slowing amid a nationwide recession and an industrywide spending slowdown. Friday all was quiet on the funding front, but the stock continued to fall in furious trading, suggesting that investors weren't altogether comforted by the company's plans. The stock slid 75 cents, or 10%, to $6.74 in midday Big Board trading. Some 36 million shares had changed hands, making the stock the NYSE's most active.