Tier 1 AGIS is on the block, and it looks like it will probably go for 15 cents on the dollar. Cited mismanagement in bankruptcy filings last month.
This first came to my attention over on the NANOG List, where the main point of discussion centers on how peering relationships will survive the bankruptcy, and the eventual change of assets ownership, of one of the Internet's primary backbone providers. Momma Mia!
There appear to be some fairly interesting analyses and opinions coming forward on the List. I may post a synopsis, or a consensus of opinions from the ISP folks, if one is formed, when the smoke settles. The release follows, and is printed here for posterity. Enjoy.
FAC
zdnet.com
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AGIS Auction Sale Set For Monday
By Max Smetannikov, Inter@ctive Week
April 19, 2000 10:42 AM PT
URL:
Bankrupt Apex Global Internet Services' assets will be auctioned off on Monday, with Swedish
Telia being the highest known bidder.
Telia plans to buy AGIS for $15 million.
"The auction filing was made primarily to give the company some breathing time," said Sheldon
Toll, an attorney at Honigman Miller Schwartz and Cohn, representing AGIS. "They filed primarily
to prevent ... service providers from disconnecting service from their backbone so they can stay in
business to conduct the sale."
The auction sale will take place in the U.S. Bankruptcy Court for the Eastern District of Michigan
at 2:30 p.m. on Monday, followed by a hearing confirming the sale of the company to the highest
bidder.
Telia's desire to buy AGIS is not unfounded. In the heyday of AGIS' reorganization, the ISP got
heavily involved in the transit business for non-U.S. carriers, essentially offering U.S. transit to
foreign carriers. Telia and Loral Orion were AGIS' two largest contracts. In the final analysis,
these are the kinds of companies that still see value in owning AGIS' assets.
"Telia, of Sweden, has bid approximately $15 million for the company, and we expect other bids
to be made at the auction," said Toll.
Philip Lawlor founded AGIS in 1994. Alltel, Lucent Technologies, Nortel Networks and Qwest
Communications International are all investors in the company. Telia's bid of 15 million is a far cry
from some of the pre-bankruptcy AGIS valuations, which have rotated around $100 million.
AGIS filed for Chapter 11 bankruptcy protection in early March, with mismanagement being the
main reason for company's failure. AGIS did make a surprise appearance at Spring Internet
World earlier this month, running a small booth on the show floor. |
