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Digital Teleport to Pay Creditors

Agreement with Bankruptcy Court to provide unsecured creditors up to 90 cents on each dollar after auction of the regional fiber business

January 15, 2003

1 Min Read

ST. LOUIS -- Digital Teleport Inc. today announced it has filed a settlement agreement with a federal Bankruptcy Court that will provide unsecured creditors up to 90 cents on each dollar of approved claims after a planned auction sale of the regional fiber business to the highest bidder. Subject to Bankruptcy Court approval, the settlement agreement proposes to pay a minimum of 82.5 percent and up to 90 percent of allowed unsecured claim amounts against Digital Teleport. The settlement agreement was filed with the U. S. Bankruptcy Court for the Eastern District of Missouri in St. Louis. “In most bankruptcy settlements, unsecured creditors are generally left holding pennies on a dollar or nothing at all,” said Paul Pierron, president and CEO of Digital Teleport. “The value we propose to provide unsecured creditors speaks to the strength of our management team and its ability to focus on growing this business in spite of the economic downturn and the stigma of operating under bankruptcy over the past year.” Digital Teleport Inc.

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