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GST/Time Warner Deal Off, GST Seeks Auction
Local exchange
communications carrier GST Telecommunications Inc. said yesterday that
it will proceed with an open
auction for all of its assets rather than a sale to Time Warner Telecom
Inc. after the U.S. firm
failed to reach a deal with GST, according to Reuters. GST said it will
seek approval from the
District Court for the District of Delaware to auction off its assets.
'Given the interest shown by a
number of other bidders, the committee's commitment to support the
company's efforts to arrange for
financing and the committee's support of an open auction process, we
believe we are taking the right
steps in proceeding with an open auction,' said Tom Malone, GST acting
chief executive. GST filed for
Chapter 11 on May 17 after being burdened with $1.2 billion in debt due
to its attempt to gain a
foothold in the competitive local exchange market. Time Warner Telecom
said that it was unable to
reach an agreement to purchase GST's assets on terms it deemed
acceptable, but that 'we remain
committed to our previously stated aggressive geographic expansion
plans.' GST said last Thursday that
it has enough cash on hand to fund daily operations until the end of
June; it has a
debtor-in-possession credit facility of $50 million with the potential
for up to $75 million more.
Bankruptcy Creditors' Service Begins Publication of Safety-Kleen
Bankruptcy Newsletter
Bankruptcy Creditors' Service Inc., Trenton, N.J., yesterday announced
the publication of
SAFETY-KLEEN BANKRUPTCY NEWS, which will track the chapter 11
reorganization undertaken by
Safety-Kleen Corp. and 73 of its U.S. debtor-subsidiaries before the
U.S. Bankruptcy Court for the
District of Delaware in Wilmington, according to a newswire report.
'Don't look for Safety-Kleen's
restructuring to be short and sweet,' says Peter A. Chapman, president
of Bankruptcy Creditors'
Service and editor of SAFETY-KLEEN BANKRUPTCY NEWS. 'These cases have
the hallmarks of a long and
arduous restructuring: $3.1 billion of debt to restructure, an
exceedingly complex capital structure,
unreliable financial statements, and staggering environmental
liabilities,' Chapman observes.
'Further, Safety-Kleen's tumble into chapter 11 is likely to be followed
by an insolvency proceeding
by Laidlaw Inc, given the amount of Safety-Kleen debt for which Laidlaw
is on the hook.' Among the
news items listed, the newsletter will report on the background
information about the company's
operations and finances, an explanation of the Laidlaw connection,
detailed information from
Safety-Kleen's bankruptcy petitions delivered to the bankruptcy court
late Friday afternoon, a
consolidated list of the its 50 largest unsecured creditors and a
calendar of the key dates and
deadlines in Safety-Kleen's chapter 11 cases. SAFETY-KLEEN BANKRUPTCY
NEWS is distributed on a
subscription basis by e-mail for $45 per issue. New issues will be
published as significant activity
occurs (generally every 10 to 20 days). A free copy of the first issue
is available at
TARGET='window_2'>http://www.bankrupt.com/sk.txt.
VF to Acquire Gitano Brand from Fruit of the Loom
VF Corp. announced yesterday that
it has received bankruptcy court approval to acquire the trademarks and
inventory of the Gitano brand
from Fruit of the Loom Inc. for roughly $18 million, according to a
newswire report. 'Gitano rounds
out our portfolio of jeans brands that are specifically targeted to
women shopping at mass merchandise
stores,' said Mackey J. McDonald, president and chief executive officer
of VF Corp. VF Corp. is the
world's largest apparel company, selling jeanswear, intimate apparel,
workwear, knitwear, playwear,
daypacks and swimwear.
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