For Release: May 06, 2010
Contact: Mike O’Brien, Vice President, Corporate Communications; Andrew Don, Vice President, Capital Market Relations
Herndon, Va.—The Public Services Commission of the U.S. Virgin Islands (PSC) voted unanimously yesterday to approve the acquisition by National Rural Utilities Cooperative Finance Corporation (CFC) of the Virgin Islands Telephone Corporation (Vitelco) and Innovative Cable TV. Upon final bankruptcy court approval of CFC’s acquisition of these and other businesses from the bankruptcy estate of Innovative Communication Corporation (ICC), CFC will close the transaction to own and manage ICC’s operating businesses, including Vitelco.
“Today’s approval of the transfer is the result of a lengthy and thorough review by the PSC, its Hearing Examiner, and PSC staff and its consultants,” stated CFC Chief Financial Officer Steven Lilly. “CFC is committed to operating a state-of-the-art telecommunications system that will be an asset to the businesses and residents of the Virgin Islands.”
In January 2009, CFC announced that it would make a credit bid to acquire the ICC-owned businesses from ICC, which remains in Chapter 11 bankruptcy. Today’s PSC approval represents the final regulatory approval necessary for CFC to complete its acquisition of the ICC businesses, as CFC has already received approvals from other regulators, including the U.S. Federal Communications Commission. The Chapter 11 Trustee and CFC will now request final authorization from the U.S. Bankruptcy Court to consummate the credit bid.
National Rural Utilities Cooperative Finance Corporation (CFC) (NYSE: NRU) (NYSE: NRN) (NYSE: NRC) is a cooperative that serves the nation’s rural utility systems. With more than $20 billion in assets, CFC provides its member-owners with an assured source of market-priced capital and financial products and services. CFC can be found online at nrucfc.org.