EMERYVILLE,
CA, March 22, 2001 -- NorthPoint Communications (OTC Bulletin Board: NPNTQ)
announced today that the United States Bankruptcy Court approved the sale of
substantially all of its assets to AT&T for a purchase price of $135
million. Pending regulatory approval, the transaction is expected to close
within 60 days.
Funding remains available to wind down NorthPoint’s operations. The company
will take steps to preserve cash pending the close of the asset sale, which
include workforce reductions and the imminent termination of network services to
customers.
Included in the asset acquisition are NorthPoint’s co-location arrangements
nationwide, certain network equipment, systems and support software and related
assets. The net purchase price will be applied in its entirety to satisfy part
of the outstanding claims of the company’s senior, secured creditors.
NorthPoint will continue to liquidate remaining assets to raise cash.
Assets excluded from the AT&T acquisition include certain tangible
and intangible network, office and related assets, customer contracts as well as
NorthPoint’s pending claims against Verizon arising from to Verizon’s
termination of the two companies’ merger agreement last year.
NorthPoint was represented by Houlihan Lokey Howard and Zukin in this
transaction.
Safe Harbor Statement under the Private Securities Litigation Reform Act of 1995: The statements contained in this release that are not historical facts may be deemed to contain forward-looking statements. Such statements are indicated by words or phrases such as "anticipate," "estimate," "projects," "believes," "intends," "expects" and similar words and phrases. Actual results may differ materially from those expressed or implied in any forward-looking statement as a result of certain risks and uncertainties. Some of these risks and uncertainties include, without limitation: NorthPoint's ability to raise additional capital, NorthPoint’s dependence on strategic third parties to market and resell its services, intense competition for NorthPoint's service offerings, dependence on growth in demand for DSL-based services and other economic, business, competitive and/or regulatory risks and uncertainties detailed in the company's Securities and Exchange Commission filings. Prospective investors are cautioned not to place undue reliance on such forward-looking statements. The Company disclaims any obligation to update any of the forward-looking statements contained herein to reflect future events or developments.
Media
Contact
Marvin Wamble
NorthPoint Communications
510-450-7432
Terry McGovern
NorthPoint Communications
510-450-7322