VarTec gets court OK to terminate employee stock plan

By Caroline Salls

Pittsburgh, June 22 - VarTec Telecom, Inc. obtained court approval to terminate its employee stock ownership plan, according to a Wednesday filing with the U.S. Bankruptcy Court for the Northern District of Texas.

According to VarTec's motion, it adopted the stock plan to allow eligible employees to acquire stock ownership interests in the company by investing primarily in VarTec's common stock.

The company said that during late 2004 it became evident that the possibility of stock being acquired from the plan had ended and it does not intend to make further contributions to the plan.

VarTec said it does offer a 401(k) plan for tax-advantaged employee savings.

VarTec, a Dallas-based telecommunications provider, filed for bankruptcy on Nov. 1, 2004. Its Chapter 11 case number is 04-81694.

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