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AMT
News
June
5 , 2002
Press Release
AppliedTheory
Assets Are Sold
What a fight to the finish for two units
of bankrupt AppliedTheory Corp. After weighing
numerous offers, the New York-based company
wound up selling its managed hosting service
unit to stalking-horse bidder ClearBlue
Technologies Inc. for about $20.2 million
in cash, notes and assumed liabilities.
It also sold its network business to stalking-horse
bidder FastNet Technologies Inc. for $4
million in cash, even though Cogent Communications
Group Inc. supposedly made a higher offer.
Both
deals were approved by Judge Robert Gerber
of the U.S. Bankruptcy Court for the Southern
District of New York, but not without some
competitiveness.
ClearBlue,
for example, beat out a similar bid by Inforonics
Inc. of Littleton, Maine because it offered
a varied package of cash, secured notes
and assumed liabilities. Another bidder,
New York-based Globix Corp., said it hadn't
completed due diligence. One of AppliedTheory's
own creditors, Palladin Group of Maplewood,
N.J. also put in a bid not up to snuff.
Meanwhile,
Washington, D.C.-based Cogent made a $4.9
million cash offer for the network business,
but FastNet sealed the deal by agreeing
to assume virtually all equipment leases
from AppliedTheory's vendors. Cogent wanted
to reject those leases, which would have
left it liable for $20 million to $40 million
in rejection damage claims, said an attorney
familiar with the case.
AMT
Capital Partners acted as financial advisors.
For
further information please contact:
Steve
Wasserman or the team at AMT Capital at,
email: info@amtcap.com
phone: 1-800-519-0533 or 212-877-1588
website: www.amtcap.com
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