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Business News – Time Warner to Buy GST Assets

Posted: 10/2000

Business News

Time Warner to Buy GST Assets

Time Warner Telecom Inc.
(www.twtelecom.com) and GST Telecommu-nications Inc.
(www.gstcorp.com) have announced that Time Warner will purchase GST’s assets for $690 million, excluding the majority of those in Hawaii and residual cash balances.

The consideration consists of cash and assumption of certain assumed liabilities, according to the announcement released jointly.

The agreement is subject to the execution of a definitive purchase agreement, approvals of the U.S. Bankruptcy Court for the District of Delaware
(www.deb.uscourts.gov) and other customary terms and conditions.

“This agreement complements our aggressive expansion plans to introduce robust broadband products and solutions to business customers in additional U.S. markets,” says Larissa Herda, Time Warner Telecom’s president and CEO.

“We look forward to the synergies and opportunities this agreement offers to customers, employees and shareholders.”

The acting CEO of GST, Tom Malone, adds, “The combination of GST’s assets and Time Warner Telecom’s strengths should produce exciting benefits for customers of both companies. We expect the transition process to be smooth, and intend to communicate openly and frequently with our customers, vendors and employees throughout the process.”

GST filed on May 17 for protection under Chapter 11 of the U.S. Bankruptcy Code. It sought and received court approval to proceed with an open-bid auction of substantially all its assets.

The auction was conducted Aug. 22-25.

GST then appeared in U.S. Bankruptcy Court for the District of Delaware, and received its approval to conclude the bidding process and proceed toward a sale to Time Warner.

The agreement is expected to close later this year. It is subject to granting final sales orders by the court and regulatory approvals.

Time Warner Telecom, headquartered in Littleton, Colo., delivers its suite of communications products and services on its local and regional fiber optic network. It provides “last mile” broadband data, voice and Internet connections in 22 U.S. metropolitan markets.

GST Telecommunications Inc., an ICP in Vancouver, Wash., provides a broad range of integrated telecommunications products and services, including enhanced data and Internet services and comprehensive voice services throughout the United States.


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