FiberTower wins approval of bid procedures for $18 million asset sale

By Caroline Salls

Pittsburgh, Oct. 4 - FiberTower Corp. received court approval of the bid procedures for the proposed sale of some of its assets to Bordercomm Partners affiliates ICB Networks Texas, LLC and ICB Networks Washington, LLC, according to a Thursday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

Specifically, the asset purchase agreement calls for the ICB entities to acquire substantially all of the debtors' assets used in connection with its business in Texas, including the Dallas, Waco, Houston, Austin and San Antonio markets, as well as the Washington, D.C., market.

A purchase price adjustment formula, based on annualized EBITDA and early termination liabilities, places the estimated adjusted purchase price at $18 million as of Sept. 28, the motion said.

If the ICB companies are not the successful bidders at auction, they will receive a $675,000 stalking horse fee.

Competing bids are due by 10 a.m. ET on Nov. 1. Overbids must be for a minimum of $19.33 million, or $725,000 more than the adjusted purchase price.

Bidding at auction will be in increments of at least $50,000.

The auction will be held on Nov. 5 and the sale hearing is scheduled for Nov. 6.

San Francisco-based FiberTower is a backhaul and access services provider focused primarily on the wireless carrier market. Its Chapter 11 case number is 12-44027.

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