January 27, 2003
GENUITY INC (GENUQ.OB)
form 8-K
Item 5. Other Events
On January 17, 2003, Genuity Inc., a Delaware corporation ("Genuity"), announced that in accordance with the bidding procedures for the proposed acquisition by Level 3 Communications and the Chapter 11 process, its Board of Directors has determined that there were no new bids for the purchase of Genuity's assets that met the criteria required to be considered a qualified offer. As a result, Genuity and Level 3 will move forward to complete the acquisition process with a Sale Hearing commencing as early as January 21, 2003.
On January 24, 2003, Genuity announced that the United States Bankruptcy Court for the Southern District of New York approved the acquisition of substantially all of the company's assets and operations by Level 3 Communications (Nasdaq:LVLT). As part of the court approval process, a number of outstanding objections also have been resolved, including the settlement of the lawsuit between Genuity and Deutsche Bank. With the court's decision, the acquisition is expected to be completed in February.
In addition to gaining court approval, Genuity also announced its staffing plans as it prepares for integration with Level 3. By the time the sale closes, Genuity will reduce its employee headcount by 700-800 of its current 2,300-person work force. Upon the closing of the transaction, it is expected that approximately 1,400-1,500 Genuity employees will be offered positions with Level 3. Additionally, a small number of Genuity employees will continue to work for the Genuity Estate for a limited period of time after the sale to Level 3 is complete. During this period, the Estate will work with the court to finalize its obligations. |
