in most instances , we ( 1 ) optimize the cost of traffic by using the least expensive cost routing , ( 2 ) negotiate lower variable usage-based costs with domestic and foreign service providers , ( 3 ) negotiate additional and lower cost foreign carrier agreements with the foreign incumbent carriers and others , and ( 4 ) continue to expand/reduce the capacity of our network when traffic volumes justify such actions . 59 our overall margin may fluctuate based on the relative volumes of international versus domestic long-distance services ; international carrier services versus business and residential long-distance services ; prepaid services versus traditional post-paid voice services ; internet , voip and data services versus fixed line voice services ; the amount of services that are resold ; and the proportion of traffic carried on our network versus resale of other carriers ' services . our margin is also affected by customer transfer and migration fees . we generally pay a charge to install and transfer a new customer onto our network and to migrate broadband and local customers . however , installing and migrating customers to our network infrastructure enables us to increase our margin on such services as compared to resale of services using other carriers ' networks . selling , general and administrative expenses are comprised primarily of salaries and benefits , commissions , occupancy costs , sales and marketing expenses , advertising , professional fees , and other administrative costs . all selling , general and administrative expenses are expensed when incurred . emphasis on cost containment and the shift of expenditures from non-revenue producing expenses to sales and marketing expenses has been heightened since growth in net revenue has been under pressure . emergence from voluntary reorganization under chapter 11 proceedings on march 16 , 2009 , the holding companies filed chapter 11 cases in the bankruptcy court for reorganization relief under chapter 11 of the bankruptcy code . subsequently , the holding companies sought and received an order directing the joint administration of the chapter 11 cases under the caption in re : primus telecommunications group , incorporated , et al . , debtors , case no . 09-10867. on april 24 , 2009 , an unsecured creditors ' committee was appointed by the united states trustee . on april 27 , 2009 , the bankruptcy court approved the holding companies ' use of a disclosure statement dated april 27 , 2009 ( the disclosure statement ) to solicit votes on the plan of reorganization . the disclosure statement was distributed to holders of record ( as of april 27 , 2009 ) of claims against , and interests in , the holding companies who were entitled to vote on the plan of reorganization ( the record date ) . the plan was confirmed by the bankruptcy court on june 12 , 2009 ( the confirmation date ) . on july 1 , 2009 ( the effective date ) , the holding companies consummated their reorganization under the bankruptcy code and the plan of reorganization became effective . see note 2emergence from voluntary reorganization under chapter 11 of the bankruptcy code to our consolidated financial statements for further details . as of the effective date , we adopted fresh-start accounting in accordance with financial accounting standards board asc no . 852 , reorganizations. the adoption of fresh-start accounting resulted in the company becoming a new entity for financial reporting purposes . accordingly , the financial statements on or prior to the effective date are not comparable with the financial statements for periods after the effective date . see note 4fresh-start accounting to our consolidated financial statements for further detail . impact of reorganization on our capital structure , long-term debt and financial statements . upon our emergence under the plan of reorganization on the effective date , the holding companies ' principal debt was reduced by $ 316 million , or over 50 % , interest payments were reduced by over 50 % and certain debt maturities were extended . the significant features of the plan included the developments summarized below : holding 's $ 96 million term loan facility due february 2011 was reinstated and amended ; ihc 's $ 173 million of outstanding 14 1 / 4 % senior secured notes due 2011 were cancelled and the holders thereof received their pro rata portion of $ 123.5 million of aggregate principal amount of 14 1 / 4 % senior subordinated secured notes due may 20 , 2013 and 4,800,000 shares of the new common stock of group ( the new common stock ) ; 60 the $ 209 million in aggregate outstanding 5 % exchangeable senior notes and 8 % senior notes issued by holding ( collectively , the holding senior notes ) were cancelled , and the holders thereof received 4,800,000 shares of the new common stock and class a warrants to purchase up to an aggregate of 3,000,000 shares of new common stock ; the 3 3 / 4 % senior notes due september 2010 , 12 3 / 4 % senior notes due october 2009 and step up convertible subordinated debentures due august 2009 issued by group ( collectively , the group notes ) were cancelled , and the holders thereof received class b warrants to purchase up to an aggregate of 1,500,000 shares of the new common stock ; all existing shares of common stock outstanding prior to the effective date ( the old common stock ) were cancelled on the effective date , and holders thereof received their pro rata share of contingent value rights ( contingent value rights or cvrs ) to acquire up to 2,665,000 shares of new common stock ; and all outstanding equity incentive grants of group were cancelled on the effective date , and the primus telecommunications group , incorporated management compensation plan ( the management compensation plan ) became effective . story_separator_special_tag for instance , when the usd weakens against the cad , there is a positive effect on reported profits and a negative effect on the reported losses for our canadian operating segment . 64 in the year ended december 31 , 2011 , as compared to the year ended december 31 , 2010 , the usd was weaker on average as compared to the cad , aud , gbp and eur . the following tables demonstrate the impact of currency fluctuations on our net revenue for the years ended december 31 , 2011 and 2010 : net revenue by location , including discontinued operationsin usd ( in thousands ) replace_table_token_8_th net revenue by location , including discontinued operationsin local currencies ( in thousands ) replace_table_token_9_th 1 europe includes only subsidiaries whose functional currency is the eur . 2 table includes revenues from discontinued operations which are subject to currency risk . in the year ended december 31 , 2010 , as compared to the year ended december 31 , 2009 , the usd was weaker on average as compared to the cad and aud ; the usd was stronger on average as compared to the gbp and eur . the following tables demonstrate the impact of currency fluctuations on our net revenue for the years ended december 31 , 2010 and 2009 : net revenue by location , including discontinued operationsin usd ( in thousands ) replace_table_token_10_th net revenue by location , including discontinued operationsin local currencies ( in thousands ) replace_table_token_11_th 1 europe includes only subsidiaries whose functional currency is the eur . 2 table includes revenues from discontinued operations which are subject to currency risk . 65 critical accounting policies to aid in the understanding of our financial reporting , our most critical accounting policies are described below . these policies have the potential to have a more significant impact on our financial statements , either because of the significance of the financial statement item to which they relate , or because they require judgment and estimation due to the uncertainty involved in measuring , at a specific point in time , events which are continuous in nature . revenue recognition and deferred revenue net revenue is derived from carrying a mix of business , residential and carrier long-distance traffic , data and internet traffic , and also from the provision of local , data center and wireless services . for voice and international carrier services voip , net revenue is earned based on the number of minutes during a call and is recorded upon completion of a call , adjusted for allowance for doubtful accounts receivable , service credits and service adjustments . revenue for a period is calculated from information received through our network switches . customized software has been designed to track the information from the switch and analyze the call detail records against stored detailed information about revenue rates . this software provides us the ability to do a timely and accurate analysis of revenue earned in a period . separate prepaid services software is used to track additional information related to prepaid service usage such as activation date , monthly usage amounts , fees and charges , and expiration date . revenue on these prepaid services is recognized as service is provided until expiration , when all unused minutes , which are no longer available to the customers , are recognized as revenue . net revenue is also earned on a fixed monthly fee basis for unlimited local and long-distance plans and for the provision of data/internet ( including retail voip ) and hosting services . data/internet and hosting services include monthly fees collected for the provision of dedicated and dial-up access at various speeds and bandwidths and colocation services . these fees are recognized as access and colocation is provided on a monthly basis . additionally , service activation and installation fees are deferred and amortized over the longer of the average customer life or the contract term . we record payments received in advance for prepaid services and services to be provided under contractual agreements , such as internet broadband and dial-up access , as deferred revenue until such related services are provided . net revenue represents gross revenue , net of allowance for doubtful accounts receivable , service credits and service adjustments . allowance for doubtful accounts receivable determining our allowance for doubtful accounts receivable requires significant estimates . due to the large number of customers that we serve , it is impractical to review the creditworthiness of each of our customers , although a credit review is performed for larger carrier and retail business customers . we consider a number of factors in determining the proper level of the allowance , including historical collection experience , current economic trends , the aging of the accounts receivable portfolio and changes in the creditworthiness of our customers . systems to detect fraudulent call activity are in place within our network , but if these systems fail to identify such activity , we may realize a higher degree of uncollectible accounts . cost of revenue cost of revenue is comprised primarily of costs incurred from other domestic and foreign telecommunications carriers to originate , transport and terminate calls . the majority of our cost of revenue is variable , based upon the number of minutes of use , with transmission and termination costs being the most significant expense . call activity is tracked and analyzed with customized software that analyzes the traffic flowing through our network switches and calculates the variable cost of revenue with predetermined contractual rates . if the domestic or foreign telecommunications carriers have tracked and invoiced the volume of minutes at levels different than what our activity shows or have invoiced at different rates , we will dispute the charges invoiced . there is no guarantee that we will prevail in such disputes . we use significant estimates to determine the level of success in dispute resolution and

liquidity and capital resources important long-term capital structure developments : exchange offers . on july 7 , 2011 , in connection with the consummation of the private ( i ) exchange offers ( the exchange offers ) for any and all outstanding units representing the 13 % senior secured notes due 2016 ( the 13 % notes ) issued by primus telecommunications holding inc. ( holding ) and primus telecommunications canada inc. ( primus canada ) , and the 14 1 / 4 % senior subordinated secured notes due 2013 ( the 14 1 / 4 % notes ) issued by primus telecommunications ihc , inc. ( ihc ) , ( ii ) consent solicitation ( the consent solicitation ) to amend the indenture governing the 13 % notes and release the collateral securing the 13 % notes , and ( iii ) related transactions , holding issued $ 240.2 million aggregate principal amount of 10 % senior secured notes due 2017 ( the 10 % notes ) . an aggregate of $ 228.6 million principal amount of 10 % notes was issued pursuant to the exchange offers , and holding issued an additional $ 11.6 million aggregate principal amount of 10 % notes for cash , the proceeds of which were used to redeem all 14 1 / 4 % notes that were not exchanged pursuant to the exchange offers and thereby discharge all of our obligations with respect to the 14 1 / 4 % notes . in connection with the exchange offers , the company also incurred $ 6.9 million of third party costs which are included in gain ( loss ) on early extinguishment or restructuring of debt on the consolidated statement of operations . see recent developmentsrecent developments involving existing notes that may impact future results and liquidity ,  above for further detail concerning the 10 % notes and the 10 % notes indenture . 14 1 / 4 % notes redemption and discharge . on april 15 , 2011 , ihc redeemed approximately $ 24.0 million principal amount of 14 1 / 4 % notes . there was $ 90.0 million aggregate principal amount of the 14 1 / 4 % notes remaining outstanding after this redemption .


 Write a concise suspicious activity report of the following text delimited by triple backquotes. Return your response as a formal report which covers the key points highlighting the location,dates,entity names and account holder information in chronological order of the text.
     ```liquidity and capital resources important long-term capital structure developments : exchange offers . on july 7 , 2011 , in connection with the consummation of the private ( i ) exchange offers ( the exchange offers ) for any and all outstanding units representing the 13 % senior secured notes due 2016 ( the 13 % notes ) issued by primus telecommunications holding inc. ( holding ) and primus telecommunications canada inc. ( primus canada ) , and the 14 1 / 4 % senior subordinated secured notes due 2013 ( the 14 1 / 4 % notes ) issued by primus telecommunications ihc , inc. ( ihc ) , ( ii ) consent solicitation ( the consent solicitation ) to amend the indenture governing the 13 % notes and release the collateral securing the 13 % notes , and ( iii ) related transactions , holding issued $ 240.2 million aggregate principal amount of 10 % senior secured notes due 2017 ( the 10 % notes ) . an aggregate of $ 228.6 million principal amount of 10 % notes was issued pursuant to the exchange offers , and holding issued an additional $ 11.6 million aggregate principal amount of 10 % notes for cash , the proceeds of which were used to redeem all 14 1 / 4 % notes that were not exchanged pursuant to the exchange offers and thereby discharge all of our obligations with respect to the 14 1 / 4 % notes . in connection with the exchange offers , the company also incurred $ 6.9 million of third party costs which are included in gain ( loss ) on early extinguishment or restructuring of debt on the consolidated statement of operations . see recent developmentsrecent developments involving existing notes that may impact future results and liquidity ,  above for further detail concerning the 10 % notes and the 10 % notes indenture . 14 1 / 4 % notes redemption and discharge . on april 15 , 2011 , ihc redeemed approximately $ 24.0 million principal amount of 14 1 / 4 % notes . there was $ 90.0 million aggregate principal amount of the 14 1 / 4 % notes remaining outstanding after this redemption .
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 Suspicious Activity Report : in most instances , we ( 1 ) optimize the cost of traffic by using the least expensive cost routing , ( 2 ) negotiate lower variable usage-based costs with domestic and foreign service providers , ( 3 ) negotiate additional and lower cost foreign carrier agreements with the foreign incumbent carriers and others , and ( 4 ) continue to expand/reduce the capacity of our network when traffic volumes justify such actions . 59 our overall margin may fluctuate based on the relative volumes of international versus domestic long-distance services ; international carrier services versus business and residential long-distance services ; prepaid services versus traditional post-paid voice services ; internet , voip and data services versus fixed line voice services ; the amount of services that are resold ; and the proportion of traffic carried on our network versus resale of other carriers ' services . our margin is also affected by customer transfer and migration fees . we generally pay a charge to install and transfer a new customer onto our network and to migrate broadband and local customers . however , installing and migrating customers to our network infrastructure enables us to increase our margin on such services as compared to resale of services using other carriers ' networks . selling , general and administrative expenses are comprised primarily of salaries and benefits , commissions , occupancy costs , sales and marketing expenses , advertising , professional fees , and other administrative costs . all selling , general and administrative expenses are expensed when incurred . emphasis on cost containment and the shift of expenditures from non-revenue producing expenses to sales and marketing expenses has been heightened since growth in net revenue has been under pressure . emergence from voluntary reorganization under chapter 11 proceedings on march 16 , 2009 , the holding companies filed chapter 11 cases in the bankruptcy court for reorganization relief under chapter 11 of the bankruptcy code . subsequently , the holding companies sought and received an order directing the joint administration of the chapter 11 cases under the caption in re : primus telecommunications group , incorporated , et al . , debtors , case no . 09-10867. on april 24 , 2009 , an unsecured creditors ' committee was appointed by the united states trustee . on april 27 , 2009 , the bankruptcy court approved the holding companies ' use of a disclosure statement dated april 27 , 2009 ( the disclosure statement ) to solicit votes on the plan of reorganization . the disclosure statement was distributed to holders of record ( as of april 27 , 2009 ) of claims against , and interests in , the holding companies who were entitled to vote on the plan of reorganization ( the record date ) . the plan was confirmed by the bankruptcy court on june 12 , 2009 ( the confirmation date ) . on july 1 , 2009 ( the effective date ) , the holding companies consummated their reorganization under the bankruptcy code and the plan of reorganization became effective . see note 2emergence from voluntary reorganization under chapter 11 of the bankruptcy code to our consolidated financial statements for further details . as of the effective date , we adopted fresh-start accounting in accordance with financial accounting standards board asc no . 852 , reorganizations. the adoption of fresh-start accounting resulted in the company becoming a new entity for financial reporting purposes . accordingly , the financial statements on or prior to the effective date are not comparable with the financial statements for periods after the effective date . see note 4fresh-start accounting to our consolidated financial statements for further detail . impact of reorganization on our capital structure , long-term debt and financial statements . upon our emergence under the plan of reorganization on the effective date , the holding companies ' principal debt was reduced by $ 316 million , or over 50 % , interest payments were reduced by over 50 % and certain debt maturities were extended . the significant features of the plan included the developments summarized below : holding 's $ 96 million term loan facility due february 2011 was reinstated and amended ; ihc 's $ 173 million of outstanding 14 1 / 4 % senior secured notes due 2011 were cancelled and the holders thereof received their pro rata portion of $ 123.5 million of aggregate principal amount of 14 1 / 4 % senior subordinated secured notes due may 20 , 2013 and 4,800,000 shares of the new common stock of group ( the new common stock ) ; 60 the $ 209 million in aggregate outstanding 5 % exchangeable senior notes and 8 % senior notes issued by holding ( collectively , the holding senior notes ) were cancelled , and the holders thereof received 4,800,000 shares of the new common stock and class a warrants to purchase up to an aggregate of 3,000,000 shares of new common stock ; the 3 3 / 4 % senior notes due september 2010 , 12 3 / 4 % senior notes due october 2009 and step up convertible subordinated debentures due august 2009 issued by group ( collectively , the group notes ) were cancelled , and the holders thereof received class b warrants to purchase up to an aggregate of 1,500,000 shares of the new common stock ; all existing shares of common stock outstanding prior to the effective date ( the old common stock ) were cancelled on the effective date , and holders thereof received their pro rata share of contingent value rights ( contingent value rights or cvrs ) to acquire up to 2,665,000 shares of new common stock ; and all outstanding equity incentive grants of group were cancelled on the effective date , and the primus telecommunications group , incorporated management compensation plan ( the management compensation plan ) became effective . story_separator_special_tag for instance , when the usd weakens against the cad , there is a positive effect on reported profits and a negative effect on the reported losses for our canadian operating segment . 64 in the year ended december 31 , 2011 , as compared to the year ended december 31 , 2010 , the usd was weaker on average as compared to the cad , aud , gbp and eur . the following tables demonstrate the impact of currency fluctuations on our net revenue for the years ended december 31 , 2011 and 2010 : net revenue by location , including discontinued operationsin usd ( in thousands ) replace_table_token_8_th net revenue by location , including discontinued operationsin local currencies ( in thousands ) replace_table_token_9_th 1 europe includes only subsidiaries whose functional currency is the eur . 2 table includes revenues from discontinued operations which are subject to currency risk . in the year ended december 31 , 2010 , as compared to the year ended december 31 , 2009 , the usd was weaker on average as compared to the cad and aud ; the usd was stronger on average as compared to the gbp and eur . the following tables demonstrate the impact of currency fluctuations on our net revenue for the years ended december 31 , 2010 and 2009 : net revenue by location , including discontinued operationsin usd ( in thousands ) replace_table_token_10_th net revenue by location , including discontinued operationsin local currencies ( in thousands ) replace_table_token_11_th 1 europe includes only subsidiaries whose functional currency is the eur . 2 table includes revenues from discontinued operations which are subject to currency risk . 65 critical accounting policies to aid in the understanding of our financial reporting , our most critical accounting policies are described below . these policies have the potential to have a more significant impact on our financial statements , either because of the significance of the financial statement item to which they relate , or because they require judgment and estimation due to the uncertainty involved in measuring , at a specific point in time , events which are continuous in nature . revenue recognition and deferred revenue net revenue is derived from carrying a mix of business , residential and carrier long-distance traffic , data and internet traffic , and also from the provision of local , data center and wireless services . for voice and international carrier services voip , net revenue is earned based on the number of minutes during a call and is recorded upon completion of a call , adjusted for allowance for doubtful accounts receivable , service credits and service adjustments . revenue for a period is calculated from information received through our network switches . customized software has been designed to track the information from the switch and analyze the call detail records against stored detailed information about revenue rates . this software provides us the ability to do a timely and accurate analysis of revenue earned in a period . separate prepaid services software is used to track additional information related to prepaid service usage such as activation date , monthly usage amounts , fees and charges , and expiration date . revenue on these prepaid services is recognized as service is provided until expiration , when all unused minutes , which are no longer available to the customers , are recognized as revenue . net revenue is also earned on a fixed monthly fee basis for unlimited local and long-distance plans and for the provision of data/internet ( including retail voip ) and hosting services . data/internet and hosting services include monthly fees collected for the provision of dedicated and dial-up access at various speeds and bandwidths and colocation services . these fees are recognized as access and colocation is provided on a monthly basis . additionally , service activation and installation fees are deferred and amortized over the longer of the average customer life or the contract term . we record payments received in advance for prepaid services and services to be provided under contractual agreements , such as internet broadband and dial-up access , as deferred revenue until such related services are provided . net revenue represents gross revenue , net of allowance for doubtful accounts receivable , service credits and service adjustments . allowance for doubtful accounts receivable determining our allowance for doubtful accounts receivable requires significant estimates . due to the large number of customers that we serve , it is impractical to review the creditworthiness of each of our customers , although a credit review is performed for larger carrier and retail business customers . we consider a number of factors in determining the proper level of the allowance , including historical collection experience , current economic trends , the aging of the accounts receivable portfolio and changes in the creditworthiness of our customers . systems to detect fraudulent call activity are in place within our network , but if these systems fail to identify such activity , we may realize a higher degree of uncollectible accounts . cost of revenue cost of revenue is comprised primarily of costs incurred from other domestic and foreign telecommunications carriers to originate , transport and terminate calls . the majority of our cost of revenue is variable , based upon the number of minutes of use , with transmission and termination costs being the most significant expense . call activity is tracked and analyzed with customized software that analyzes the traffic flowing through our network switches and calculates the variable cost of revenue with predetermined contractual rates . if the domestic or foreign telecommunications carriers have tracked and invoiced the volume of minutes at levels different than what our activity shows or have invoiced at different rates , we will dispute the charges invoiced . there is no guarantee that we will prevail in such disputes . we use significant estimates to determine the level of success in dispute resolution and

