Internet Communications Corp and Rocky Mountain Internet Inc have settled their dispute over an abandoned agreement and have both dropped all suits between them, with no money changing hands. The two Colorado ISPs had sued each other for damages arising from the termination of a merger agreement.
RMI, which now goes under the name of RMI.Net announced in June last year that it would acquire ICC for $38m and would finance it through high-yield debt financing. However, RMI withdrew in October, citing ICC’s failure to meet certain conditions of the deal, so ICC sued RMI for $30m in damages. But RMI hit back, counter-suing for around $175m to recover the amount it was trying to raise as a debt offering to finance the ICC acquisition and other projects.
Now both parties have agreed to drop all suits against each other and get on with life. Both companies’ shares have been trading close to 52-week lows for some time and ICC was threatened with de-listing from Nasdaq after the dispute arose. Meanwhile, RMI.Net yesterday reported second-quarter net losses of $4.1m, up from $719,000 last time, on revenues that grew 196% to $6.4m.
