NEW YORK — The international law firm of McDermott Will & Emery acted on behalf of IDT Corporation in its acquisition of substantially all the operating assets of Winstar Communications, Inc. pursuant to a sale order by the U.S. Bankruptcy Court in Winstar's ongoing bankruptcy proceedings. The purchase, valued at $42.5 million, was paid $30 million in cash and $12.5 million in IDT Class B Common Stock.
Nearly a dozen McDermott Will & Emery lawyers in the Firm’s New York and Washington, D.C. offices were engaged in intensive due diligence, enabling IDT to submit a bid at a bankruptcy auction within one week from the time McDermott became involved. Although IDT did not have the winning bid at the auction, the original "winning" bidder's financing fell through and a week later, IDT's bid was approved by the Bankruptcy Court in Delaware. McDermott’s legal team, which continues to advise IDT, includes New York partner Mark Selinger.
"This transaction illustrates McDermott’s ability to seamlessly coordinate efforts in real time between diverse offices and practice groups," commented Mr. Selinger. "In three short weeks, our team of lawyers provided IDT with the advice and assistance needed to successfully meet the requirements of this important business transaction."
McDermott is assisting IDT in coordinating the post-closing integration process, which requires the transfer of numerous FCC licenses and regulatory approvals in all 50 states. The Firm is also assisting IDT in its tax structuring, securities law filings, intellectual property transfers and other matters relating to this transaction.
IDT Corporation is a leading facilities-based, multinational carrier which provides a broad range of telecommunications services to its retail and wholesale customers worldwide. Through its own national telecommunications backbone and fiber optic network infrastructure, IDT provides integrated and competitive international and U.S. long distance telephony and prepaid calling cards.
Winstar Communications operates as a Competitive Local Exchange Carrier (CLEC ) in 50 states using fixed wireless technology. The company's core business is providing telephone and data services to enterprise customers helping companies transition to the internet-centered business style and compete in the fast growing electronic marketplace.