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Star Telecommunications Files for Bankruptcy; 4 Top Execs Resign

March 14, 2001|From Reuters

WILMINGTON, Del. — Star Telecommunications Inc. filed for Chapter 11 bankruptcy protection Tuesday and said that four top executives resigned, days after Nasdaq halted trading in the Santa Barbara company's stock.

In papers filed in U.S. Bankruptcy Court in Delaware, the provider of telecommunications services listed assets of $630.1 million and debts of $284.6 million.

According to court papers, three subsidiaries of Star filed for bankruptcy Friday in the Eastern District of New York. They include PT-1 Communications, PT-1 Long Distance Inc., and PT-1 Technologies Inc.

Nasdaq halted trading in Star shares on Friday, and later revised the status to "additional information requested." The shares closed Friday at 13 cents after hitting $7 at one point last year.

In January, Star announced the sale of its PT-1 Communications debit card division to Newark, N.J.-based IDT Corp. and an increase in IDT's stake in Star from 4.9% to 9.9% of Star's outstanding common stock.

Star Chairman Brett Messing resigned Tuesday, the company said, along with Chief Financial Officer Allen Sciarillo, Executive Vice President David Van Crumly and general counsel Timothy Sylvester.

Gordon Hutchins Jr., a Star director, will act as interim chief executive at the request of the company's board.

Calls to IDT and Star were not immediately returned.

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