Incomnet Will Use Loan to Repay Creditors

Incomnet Inc., the Irvine telecommunications and network marketer, said Friday that it received a $5-million loan that it will use to repay two of its largest creditors. Incomnet’s subsidiary, Irvine-based National Telephone & Communications, is in default to MCI WorldCom Inc. and First Bank & Trust of Newport Beach. First Bank and WorldCom have agreed not to take any action against NTC until Dec. 15. Neither company could be reached for comment Friday. Under the loan terms, Incomnet is required to issue to the lender, which it declined to identify, warrants to purchase 500,000 shares of common stock at $1 per share. The loan, with an interest rate of 15% a year, is due upon completion of an additional $20-million loan expected to be finalized by mid-December, Incomnet officials said. Incomnet’s stock price rose 6 cents, to $1.88, in Nasdaq trading Friday.