MIDCOM and WinStar Enter Into Asset Purchase Agreement.SOUTHFIELD, Mich.--(BUSINESS WIRE)--December 17, 1997--MIDCOM Communications Inc. (NASDAQ NASDAQ in full National Association of Securities Dealers Automated Quotations U.S. market for over-the-counter securities. Established in 1971 by the National Association of Securities Dealers (NASD), NASDAQ is an automated quotation system that reports on :MCCIQ) announced today that it has entered into an asset purchase agreement with WinStar Communications, Inc. Under the terms of the agreement, WinStar will purchase substantially all of MIDCOM's assets and those of its subsidiaries, PacNet, Inc. and Cel-Tech International Corporation, in exchange for $92.0 million, subject to certain adjustments. "I am pleased with the WinStar agreement and believe it represents a fair price for the benefit of MIDCOM's creditors," said William H. Oberlin, MIDCOM's president and chief executive officer. Not included in the agreement are the company's conference calling business and AdVal Inc., a MIDCOM MIDCOM Middlebox Communication (IETF draft for NAT/firewall transversal) subsidiary, which offers facsimile broadcast services. The company continues to review strategic options with respect to these assets. Under the agreement, WinStar will provide employment for substantially all of MIDCOM's employees and will maintain MIDCOM's key distribution channels. "MIDCOM's focus on providing long distance and other telecommunication services to small and medium-sized businesses meshes well with WinStar's national local communications strategy," said Oberlin. Under bankruptcy code Bankruptcy Code may refer to:
Forward-looking Statements forward-looking statement A projected financial statement based on management expectations. A forward-looking statement involves risks with regard to the accuracy of assumptions underlying the projections. Statements in this news release concerning the ultimate sale of assets of the company are forward-looking statements. Actual developments could differ materially from those expressed or implied by such forward-looking statements as a result of known or unknown risks, uncertainties and other factors including those identified in the company's annual report on Form 10-K Form 10-K A report required by the SEC from exchange-listed companies that provides for annual disclosure of certain financial information. Form 10-K See 10-K. and those described from time to time in the company's other filings with the Securities and Exchange Commission, press releases and other communications. Founded in 1989, MIDCOM provides a broad range of telecommunications services to small and medium-sized businesses nationwide. The co1 of the U.S. Bankruptcy Code on November 7, 199IGAN IGAN Immunoglobulin A Nephropathy INDUSTRY KEYWORD: COMPUTERS/ELECTRONICS COMED TELECOMMUNICATIONS |
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