SkyTerra Communications To Buy Verestar’s Assets
Verestar, a Fairfax, Va.-based provider of managed network solutions via satellite and fiber, has reached an agreement in principle to sell substantially all of its assets to SkyTerra Communications. Under the terms of the transaction, which remains subject to superior offers through the bankruptcy auction process, SkyTerra will pay $7 million in cash for an 80.1 percent interest in a new Verestar entity. In addition, SkyTerra has agreed to provide at least $3 million in funding to Verestar immediately upon closing of the transaction. Further, SkyTerra anticipates offering employment to substantially all of the current Verestar employees. Verestar filed for bankruptcy on Dec. 22, 2003. The transaction is expected to close early in the second quarter of this year.