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
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
08628. 888-999-3273. Home page: www.shuttleamerica.com
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."
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.
Newsom, CEO. 609-921-3892; fax, 609-921-1926. Home page:
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:
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, 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.
Karen A. Sullivan, 61, on March 15. She was a surgical coordinator for
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
"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
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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