SureWest Picks Up Assets of Bankrupt WINfirst

In the thralls of the post-telecom boom, SureWest moves in to pick up the local spoils of a foiled fiber-to-home scheme for $12 million.

by ISP-Planet Staff [June 24, 2002]

Roseville, California-based SureWest Communications has signed an agreement to acquire certain assets of Western Integrated Networks, LLC, which operates under the "WINfirst" name.

Denver-based WINfirst filed a voluntary petition for reorganization under Chapter 11 of U.S. Bankruptcy Code on March 11, 2002. The company provided high-speed voice, data, and video services as part of a "fiber to the home" business strategy.

The acquisition allows SureWest (Nasdaq:SURW) to expand its broadband services into Sacramento, Calif. As part of the deal, SureWest has agreed to pay $12 million for the assets, which will be acquired from WIN and a number of affiliated entities. Earlier this month, the Sacramento Metropolitan Cable Television Commission issued a license to SureWest in anticipation of this transaction.

Brian Strom, SureWest president and chief executive officer, said part of the company's strategic goals was to become the dominant integrated communications provider in the Sacramento area.

"If we are successful in completing the transaction, SureWest will enjoy the benefits of WIN's large capital investment that can be put to immediate use within the Sacramento region," Strom said.

Strom also asked that employees and customers at both carriers remain patient during the transitional period of the acquisition.

"While SureWest believes there are great opportunities associated with the acquisition, there are challenges to completing the transaction," Strom said. "Closing requires the cooperative efforts of a great number of people including WIN's employees, suppliers and customers."

If the transaction is consummated, SureWest will embark on a long-term program to leverage its fiber optic network architecture and service experience to bring broadband data, video and voice services to many more customers.

Given the uncertainties of WINfirst's continued operations while under bankruptcy protection, both SureWest and WIN are working toward a rapid completion of the acquisition.

The agreement and supporting documentation will be filed with the Bankruptcy Court within a few days to begin the process necessary for approval. Absent any overbid, SureWest expects to close the transaction next month.

SureWest Communications consists of a family of companies including Roseville Telephone Company, SureWest Wireless, SureWest Broadband, SureWest Internet, among others.

The company's principal operating subsidiary, Roseville Telephone Company, is California's third largest telecommunications company, providng telecom services for nearly 90 years as the Incumbent Local Exchange Carrier (ILEC) to the communities of Roseville, Citrus Heights, Granite Bay, Antelope and parts of Rocklin.

The company, through its Competitive Local Exchange Carrier (CLEC) and subsidiaries, is licensed to provide fiber optics, 39 GHz wireless, PCS wireless, DSL, high-speed Internet access and data transport.

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