newsbytes@clarinet.com (02/04/90)
ATLANTA, GEORGIA, U.S.A., 1990 FEB 1 (NB) -- ALC Communications of Birmingham, Michigan, owners of the Allnet long distance system, decided not to follow up on a letter of intent it signed to merge with Telecom USA on January 8. The story is not over, however, since the company is in technical default on subordinated debentures, and its "standstill" agreement with most holders of those debentures was subject to the Telecom USA deal going through. Management indicated that it will discuss with the controlling debenture holders extending the "standstill" until other arrangements can be made. Separately, ALC's CTI Telecommunications unit was sold to Cincinnati Bell for an undisclosed price, which ALC said represented a profit over the price at which it purchased the unit two years ago. CTI was formerly known as Clark Telecommunications, and supplies computer systems, consulting, long distance telecommunications, market research, and databases with 43 employees. CTI also supplies and repairs telecommunication equipment in the Cincinnati area. "We are very satisfied with the terms of this agreement," said Marvin Moses, chief financial officer of ALC. "This action was taken as part of the company's overall focus on strengthening its financial position." (Dana Blankenhorn/19900202/Press Contact: Mary Ann Robb, ALC Communications Corporation, 313-433-4273; Cincinnati Bell, Kyle Hill, 513/397-1240) -- This, and all other articles in the clari.nb hierarchy are Copyright 1990 by the Newsbytes Information Service. Only paid subscribers may access these articles. Any unauthorized access, reproduction or transmission is strictly prohibited. We will reward the first provider of information that helps us stop violators of this copyright. Send reports to reward@clarinet.com.