IDT buys Winstar
IDT Corp., a New Jersey telecom company, bought troubled Winstar Communications Inc. for about $40 million after winning approval from a bankruptcy judge.
Saddled with debt, Winstar nearly shutdown operations and liquidated its assets before IDT stepped forward. The bankruptcy judge forced Winstar to continue operating to prevent the disruption of Winstar services at several agencies, including the FBI, Security and Exchange Commission and Defense Department.
Winstar holds 14 Metropolitan Area Acquisition contracts, which were awarded by the General Services Administration to provide local telecommunications services to government agencies in cities around the country. Winstar has won more MAA deals than any other telecom provider.