Level 3 (LVLT) has been dogged by $6.4 billion in debt from M&A activity and virtually non-existent operating income.

The tough credit environment is catching up to the firm.

LVLT has $700 million in debt due over the next several quarters. Odds are that money can’t be refinanced.

“As the operations continue to deteriorate, there’s a slimmer and slimmer chance that the credit markets are going to give them a chance to refinance,” Stanford Group Co.’s Michael Nelson said, according to Bloomberg.

LVLT is trading at $1, but without positive news about its balance sheet, the company is likely to watch that share price drop as the year wears on.

Douglas A. McIntyre