ICG Communications, which has the dubious distinction of being the first telecom to go bankrupt before the bandwidth bubble has been sold for $6.3 million, according to The Rocky Mountain News. Columbia Capital of Alexandria, Va., and M/C Venture Partners of Boston will purchase ICG for 75 cents a share and the assumption of nearly $100 million in debt, the daily reports. Columbia and M/C, which have a combined $2.4 billion in investments in such companies as Nextel and XM Satellite, will create a joint firm to buy ICG, The News adds.
This is the second major crisis for the company. In the first stage, high profile and free-spending Shelby Bryan, also known as Mr. Anna Wintour, (who is the frosty and imperial editor of Vogue) was to blame. After going bankrupt, the company was nursed back to health by turnaround expert Randall Curran, and emerged as an intact company nearly two years ago. But with ICG’s biggest customer Qwest in trouble itself, it was only a matter of time before ICG ran out of cash. I am not sure of this but Cisco might be taking some write-off on this one. They sold tons of equipment to ICG and used them as a poster child for their IP-Network vision.
ICG’s bankruptcy proves my theory of bankrupt-go-bankrupt which was published two years ago in the last days of disco, err, red herring! Well I guess I was a year too early on that one!