DUBLIN, Ohio-SmarTalk TeleServices Inc. announced it has signed a definitive agreement to
sell substantially all of its assets to AT&T Corp. for up to $192.5 million in cash, subject to downward adjustment at
closing.
Separately, SmarTalk, a provider of prepaid calling cards and prepaid wireless service, has commenced a
Chapter 11 reorganization case in bankruptcy court in Delaware.
AT&T said SmarTalk’s assets will enable it to
expand its prepaid card retail distribution capability. The companies expect the transaction to be finished at the close of
the first quarter. At signing, AT&T has made debtor-in-possession financing immediately available to
SmarTalk.
“The board determined that this transaction provides the best means for ensuring uninterrupted
prepaid calling-card service to its customers, retailers and distributors and maximizes the value of corporate
assets,” said SmarTalk’s Chief Executive Officer Erich Spangenberg.
