I want to go through a list of each counterparty we think is going to go into bankruptcy and what we are doing to prepare for that.  Thanks.  Mark

 -----Original Message-----
From: 	Mellencamp, Lisa  
Sent:	Monday, August 27, 2001 8:50 AM
To:	Schuler, Lance (Legal); Haedicke, Mark E.; Krautz, Michael
Subject:	FW: DTI Holdings, Inc.
Importance:	High



 -----Original Message-----
From: 	Wilhite, Jane  
Sent:	Monday, August 27, 2001 8:38 AM
To:	Thapar, Raj; Brysch, Jim; Mellencamp, Lisa
Cc:	Rohauer, Tanya; Pearce, Barry
Subject:	DTI Holdings, Inc.
Importance:	High

DTI Holdings, Inc. could file for bankruptcy at any point in time.  The Company is solely dependent upon financing from it's parent, KLT Telecom Inc.  The board of KLT has been advised that they have no further obligation to fund the remaining $30.5MM of availability under the Credit Facility.  Even if DTI Holdings received the remainder of availability under the Credit Facility it would only last 1-2 quarters (through the end of the calendar year) due to a cash burn rate from operations of approximately $15MM and capex of approximately $12MM for the 2Q01.  The Company also has a demand loan to its parent of $94MM and interest payable of $4.7MM.

If you would like to discuss further please feel free to call.

Jane Wilhite
ext. 35063