Just days after its purchase of Advanced TechCom Inc (CI No 3,338), communications equipment manufacturer World Access Inc is buying again, this time aiming for troubled network access provider Cherry Communications Inc, which trades under the name of Resurgens Communications Group. World Access has signed a letter of intent to purchase Resurgens which was declared bankrupt last October. One of Resurgens’ biggest customers is WorldCom Inc, who has agreed to provide Resurgens with up to $28m in financing in the form of a debtor, and as a result WorldCom is expected to own around 55% of Resurgens outstanding stock. Terms of the World Access deal have not been fleshed out yet, but the company has postponed publication of its year end results as a consequence of the planned acquisition. In 1997 World Access shipped $9.4m worth of switching equipment to Resurgens, which will not be recorded as revenue for the fourth quarter. This means the company will fall short of analysts’ expectations, and it will reschedule a new date for publication, pending the outcome of negotiations with Resurgens.
