Crowded Skies At Mercer Airport?

New in Town

Management Moves

Deaths

Start-ups

Corrections or additions?

These articles by Barbara Fox were prepared for the March 17, 2004

issue of U.S. 1 Newspaper. All rights reserved.

Life in the Fast Lane

At least RCN’s bankruptcy will not be a shock. In a message to

employees on its optimistically-named bankruptcy-update website,

www.rcntomorrow.com, the company reveals that it has been negotiating

with its bankers for debt reduction for three years.

The bankers, in turn, keep allowing the telecommunications company

another fraction of an inch of rope. On Monday, March 15, the

anniversary of the date on which Caesar was slain, the drop dead date

for consensual debt restructuring was moved up yet again, this time to

April Fool’s day.

In announcing the extension, the company also said that it would not

be filing its annual report on time, and had so informed the SEC.

The extension notice followed just three days after RCN replaced its

financial adviser, Merrill Lynch, with the Blackstone Group, the

world’s largest buyout firm. At that time, it also said that Douglas

Bradbury, who was hired in October to head up the protracted

restructuring, had departed. The company’s new president, John Dubel,

will now head up the discussions.

Under its anticipated restructuring, which the company says will be

carried out under Chapter 11 protection, senior notes would be

converted into equity. Its website message to investors says the

effect on their stock would be "extremely significant, if not

complete, dilution of current equity." In a column published online on

Monday, March 15, Newsweek columnist Allan Sloan comments that the

English language translation of this eventuality is that stock in the

company will become "worthless, or virtually worthless."

RCN sells bundled Internet, phone, and cable television service to

436,000 customers in major U.S. cities. It has 2,700 employees, and is

vowing to stagger on in the decimated telecommunications industry as

it struggles to get its note holders to agree to the bankruptcy it

sees as its last, best hope.

-Kathleen McGinn Spring

Top Of Page
Crowded Skies At Mercer Airport?

Shuttle America has announced that it will stay in Trenton after all.

It made the announcement after another airline eagerly snapped up the

chance to take over the route to Bedford, Massachusetts route. Now two

airlines are flying to the Boston suburb – and a third airline may

move in as well.

Atlantic Coast Airlines, based at Washington-Dulles Airport says that

Trenton is among the 90 potential destinations for its proposed

expansion. It plans to choose 50 of the 90 and add 350 low-fare

flights daily as early as this summer. Atlantic Coast now flies as

part of United Express, but it wants to be independent and operate as

Independence Air.

Shuttle America, Trenton Mercer Airport, West Trenton

08628. 888-999-3273. Home page: www.shuttleamerica.com

Top Of Page
New in Town

Yash Technologies, 28A Jefferson Plaza, Princeton 08540.

Jacob George. 732-355-9070; fax, 732-355-1123. Www.yash.com

Early in March Jacob George opened a Jefferson Plaza office of the

Yash Technology IT firm. A native of Cochin in Kerala, India, George

went to the Indian Institute of Management in Bangalore, Class of

1990, and has a master’s degree in International Business Management

from Georgetown University. He has worked for Satyam Computers, SSIT

Americas (a joint technology venture with NASDAQ), and Baan, an Indian

firm. in India. He and his wife, a psychologist, live in Lawrenceville

with their preschool child.

Based in East Moline, Illinois, Yash has partnerships with such firms

as IBM, Oracle, SAP, Interwoven, Mercury Interactive, and Actuit. "We

have are expanding in the region," says George, "and we are recruiting

project managers and also those in sales and marketing with experience

in IT outsourcing, business process outsourcing, E-business solutions,

and technology integration."

Top Of Page
Management Moves

Harrison Career Institute, 1001 Spruce Street, Ewing

08628. Carol Heininger, director. 609-656-4303; fax, 609-656-4373.

Home page: www.hci.edu

Carol Heininger became the director of Harrison Career Institute last

fall. Recently the school relocated from Carnegie Drive to 10,000

square feet on Spruce Street in Ewing. The 14-person staff prepares

students for medical and business careers. It was formerly known as

Star Technical Institute.

SciTec Inc., 100 Wall Street, Princeton 08540. C.E.

Newsom, CEO. 609-921-3892; fax, 609-921-1926. Home page:

www.scitec.com

Employees from SciTec Inc. bought themselves out from Northrop Grumman

Space & Missions Systems Corporation on October 30, 2003. SciTec had

been a division of Northrop Grumman. A service contractor, SciTech

does R&D, phenomenological modeling, and special instrumentation to

support defense and intelligence systems, says CEO Clifton E. Newsom.

Its clients include the defense department, National Laboratories,

U.S. Intelligence Centers, and other defense and intelligence prime

contractors. Its subcontracts and contracts had been issued under the

name of SciTec Inc. Founded in 1979, the 40-person company occupies

33,000 square feet at Research Park and has annual revenues of from $5

to $10 million. @move lede:State Theater, 15 Livingston Avenue, New

Brunswick 08901-1903. 732-246-7469; fax, 732-247-4005. Home page:

www.statetheatrenj.org

After three years as president and CEO of the State Theater, Mark

Hough is leaving to "pursue other professional opportunities," says a

press release. Christopher Butler, vice president of programming and

operations, will be in charge until a successor is named, says Thomas

Kelso, board chairman. The renovated 1921 vaudeville theater presents

international symphony orchestras, Broadway musicals, opera, kids’

events, dance, and more.

Best Associates, 108 Wall Street, Princeton 08540. John

Best, president. 609-683-7999.

John Best has closed his own company, Best Associates, and now works

full-time for his major client, Multiforce, at 101 Wall Street

(www.fuelforce.com), working on fuel programs for fleet management.

Top Of Page
Deaths

Karen A. Sullivan, 61, on March 15. She was a surgical coordinator for

Lawrenceville Urology.

Top Of Page
Start-ups

Crystal Ridge Partners, 17 Hulfish Street, Suite 200,

Princeton 08542. Jack Baron, partner. 609-924-2088; fax, 609-924-5088.

New on Hulfish Street is Crystal Ridge Partners, a private equity

firm, with Jack Baron and Don Hofmann as partners. An alumnus of

Lehigh University with an MBA from Fordham, Baron has been a managing

director in the structure finance division of Chemical Bank and was in

charge of the middle market investment banking group at Manufacturers

Hanover Trust. Most recently he was responsible for new business

development at J.P. Morgan Partners, where he also worked on

management buyouts for the consumer and industrial manufacturing

sectors.

"Don Hofmann and I recently started the firm to invest private equity

in established manufacturing, distribution and service companies with

sales between $10 million and $75 million," says Baron. "We will look

to invest between $2-8 million per transaction as control investors,

or as a minority partner as late stage growth equity. Our primary

geographic focus is in the Mid-Atlantic, North East and North Central

regions."

Baron is an executive in residence for the MBA program at Lehigh and

remains a senior advisor at JPMP. Hoffman, also a former partner at

JPMP, is also still a senior advisor there.


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