XO Communications on Wednesday announced it has completed the sale of its European ISP business, a move announced last May to cut operating expenses and streamline the company.

XO, however, would not release any details of the sale. Nor would it reveal the name of the buyer, keeping all aspects of the transaction secret except for the $320.1 million charge it took in the fourth quarter related to exiting its European business.

XO officials did not return phone calls today or Wednesday.

The competitive carrier is now immersed in a tug-of-war with its bondholders to keep the company viable. Trying to wipe clean its balance sheet, XO has negotiated a deal with investor Forstmann Little and Telefonos de Mexico (Telmex). The offer would infuse another $800 million into the company and would give the two companies a 78% ownership stake. The deal would also give bondholders equity stakes in the company while completely wiping out the value of all current outstanding stock.

XO has already stopped paying its bond interest, and if bondholders do not accept the deal, XO will file for bankruptcy.--Kevin Fitchard, Staff Writer