WILMINGTON, Delaware, United States—IDT, the former suitor of Teligent, made a bid for Winstar Communications, offering about US$40 million for the local multipoint distribution services (LMDS) carrier, which was moments away from liquidation.
Lawyers for Winstar were planning to ask the bankruptcy court if the company could file for Chapter 7 after a qualified bidder failed to come forward. Among them was former Winstar Chief Executive Officer (CEO) and Chairman William Rouhana and President and Chief Operating Officer (COO) Nathan Kantor, both of whom resigned to be able to bid on Winstar’s assets.
If the bid is approved by a bankruptcy court judge, it is believed IDT will continue to operate Winstar’s service.
In related news, Winstar’s former acting CEO, Frank Jules, now is the CEO of US LEC, a U.S.-based telecom provider. He replaces Tansukh Ganatra, US LEC’s co-founder, who is retiring 31 December.
