360networks to Buy GT

360networks to acquire the troubled Group Telecom in a cash acquisition, the terms of which were not disclosed

November 19, 2002

1 Min Read

TORONTO and VANCOUVER -- 360networks Corporation, a leading provider of wholesale and data telecommunications services, announced today that it will acquire Group Telecom, Canada's largest independent, facilities-based telecommunications provider. Terms of the cash acquisition were not disclosed, but will be included in Group Telecom's plan of reorganization. "We are very excited about combining these two successfully restructured companies. GT is a leading telecom provider across Canada with tremendous strength in its 13,000 customers, skilled employees, innovative product set, and extensive metro network," said Greg Maffei, 360networks chief executive officer. "Together we will be Canada's largest and most complete full-service competitive telecommunications company." Together, 360networks and GT will have assembled the most extensive competitive telecommunications network assets in Canada. 360networks recently completed lighting its advanced intercity fiber networks in North America connecting 48 major cities in the United States and Canada. Group Telecom offers a full suite of voice and data telecommunications services across 17 metro fiber networks in nine Canadian provinces. This transaction will not involve any significant recovery for the trade creditors of GT Group Telecom Services Corp. and GT Group Telecom Services (USA) Corp. and will involve no recovery for the unsecured lenders or shareholders of GT Group Telecom Inc. Outstanding claims of Group Telecom's unsecured creditors will be dealt with in a CCAA Plan of Arrangement associated with the implementation of the transaction. 360networks Inc. GT Group Telecom

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