NEW YORK—Winstar Communications Inc. intends to file with the Bankruptcy Court in the District of Delaware a motion to establish procedures for an auction of the company’s assets in early December, the company announced.
Winstar has been working toward a potential sale of or investment in the company to speed its exit from Chapter 11.
In addition, William J. Rouhana, chairman and chief executive officer, and Nathan Kantor, president and chief operating officer, have resigned in order to be in a position to submit a bid for Winstar as part of the auction process.
Frank J. Jules, the current president and COO of U.S. Operations for Winstar, will assume the position of acting CEO, and Steven B. Magyar, a director of Winstar, will be the new acting chairman of the board of directors.
“I am pleased that a timetable for the auction process has been set, as we continue with our plan to emerge from Chapter 11 as quickly as possible,” said Jules. “We have a strong management team in place as we move forward with the auction process and the ultimate sale of Winstar.”
