McLeodUSA exited Chapter 11 bankruptcy today, naming Royce Holland its new CEO.

Holland is the former CEO and co-founder of another competitive local exchange carrier (CLEC), Allegiance Telecom, which declared bankruptcy in 2003 and was acquired by XO Communications in 2004. Before that, Holland was also a president and co-founder of MFS Communications, one of the nation's first CLECs, which was acquired by Worldcom in 1996.

McLeod's previous CEO, Chris Davis, resigned last August along with its chief financial officer, Ken Burckhardt. Following her departure, McLeod was led by Chief Restructuring Officer Stan Springel, who had been hired to advise the company on strategy. Its CFO was replaced by acting CFO Joe Ceryanec.

McLeod's prepackaged restructuring plan, executed within weeks of its approval, eliminated about $677 million in debt by converting it to 100% of the company's equity, canceling its former common and preferred stock. The company also reduced its remaining debt to about $73 million using the sale of its former headquarters building in Cedar Rapids, Iowa. Net of available cash, the company currently has about $50 million in debt and access to another $50 million in the form of a $40-million revolving credit facility and a new $10-million term loan.

The company also named a new board of directors, which includes Holland, John Hank Bonde, Donald Campion, Eugene Davis, John McEvoy, Alex Stadler and D. Craig Young. Davis no longer holds her seat, which she retained after she resigned as CEO.