Monday, November 06, 2000
Aliant to Amalgamate Subsidiaries
Charlottetown, PEI –
Aliant Telecom Inc.’s Board of Directors has approved an amalgamation with certain of its wholly owned subsidiaries including NBTel Inc., NewTel Communications Inc., Island Telecom Inc. and Maritime Tel & Tel Ltd. pursuant to provisions of the Canada Business Corporations Act. The reorganization will be completed on January 1, 2001, subject to the approval of certain bondholders for some of the individual subsidiaries. Meetings with bondholders will be held in Toronto in December.
The rationale for the proposed amalgamation is to align the legal structures of the telecom business of Aliant to reflect the actual operational practices, which have existed since the merger of the parent companies in June of 1999. If approved, this amalgamation will streamline accounting, financial and cash management processes as well as tax, legal and regulatory filings.
Provided bondholders approve, this amalgamation will mean these subsidiaries will legally begin to operate under the Aliant Telecom name. Aliant Telecom will continue to use existing brand names – MTT, NB Tel, Island Tel and NewTel in their respective provincial markets.
Dominion Bond Rating Service has confirmed that Aliant Telecom would have an “A” rating on all of its secured and unsecured debt after the proposed amalgamation. The recently merged Standard & Poor’s and Canadian Bond Rating Service have confirmed that Aliant Telecom would have an “A” rating on its unsecured debt and that the secured debt of the former Maritime Tel & Tel Ltd. would be rated “AA-” and the secured debt of the former NewTel Communications Inc. and Island Telecom Inc. would be rated “A+”.
The Aliant group of advanced technology companies and its staff of over 10,000 professionals delivers full service, integrated solutions through its core lines of business: wireline and wireless telecommunications, information technology, remote satellite communications, and Internet-based business solutions. From its base in Canada, Aliant serves consumer and business customers worldwide.
For further information contact: