FiberTower, Bordercomm companies seek OK of $2.25 million settlement

By Jim Witters

Wilmington, Del., Nov. 14 - FiberTower Corp. and Bordercomm Partners affiliates ICB Networks Texas, LLC and ICB Networks Washington, LLC have reached a settlement related to ICB's decision to cancel the purchase of some of FiberTower's assets, according to a Nov. 14 filing with the U.S. Bankruptcy Court for the Northern District of Texas.

"As a consequence of the purchasers being unable to close the transaction, the purchasers and the debtors engaged in discussions and negotiations regarding the damages to the debtors and potential resolution of this issue," the filing states.

Under the settlement, a $2.25 million deposit will be released to FiberTower and the parties will exchange releases.

FiberTower and the Bordercomm companies entered into an asset purchase agreement on Sept. 24 for the sale of substantially all of FiberTower's assets in the Washington, D.C., and Texas markets.

Bordercomm deposited $2.25 million to be offset against the final purchase price at closing.

The buyers and Sprint Communications Co. LP sought to delay the sale hearing and issues concerning the assumption and assignment of Sprint's agreements with FiberTower until Nov. 19.

FiberTower objected to the delay.

On Nov. 5, the court denied the requests for adjournment.

At that hearing the buyers backed out of the sale.

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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