FASTNET(R) Signs Asset Purchase Agreement With US LEC Corp
4 November 2003
FASTNET Corporation (BULLETIN BOARD: FSSTQ) , announced today that it has entered into an Asset Purchase Agreement to sell substantially all of its assets, including its Broadband and Dial Up Internet Access, Co-location, and Managed Hosting business units, to US LEC Corp. for an estimated $6.8 million, which is subject to adjustment and includes the assumption of certain liabilities. The transaction does not include assets associated with FASTNET's Web Development and Wireless Access businesses. The completion of the transaction is contingent on the satisfaction of a number of conditions, including certain requirements under the Bankruptcy Code and approval of the United States Bankruptcy Court for the Eastern District of Pennsylvania. The transaction contemplated by the Asset Purchase Agreement with US LEC Corp. is expected to be completed in December, 2003.
R. Barry Borden, CEO of FASTNET, commented, "This agreement marks a major step forward in setting the stage for the conclusion of FASTNET's bankruptcy process and provides the assurance of continuity of service to our customers. We are excited that we have been able to maintain our original stated goal of resolving these issues within a six-month period. We are particularly pleased that we have fulfilled our commitment to our customers to bring top quality companies such as US LEC into the process to maintain the high degree of customer service and satisfaction that our loyal FASTNET customers have come to expect."
Headquartered in Charlotte, North Carolina, US LEC (NASDAQ:CLEC) is a super-regional telecommunications carrier providing voice, data and Internet services throughout 14 Southeast and Mid-Atlantic states. With more than 900 employees, US LEC serves over 75 markets and more than 14,000 medium and large-sized business customers.
