Electronic Information Report

Winstar Files For Bankruptcy Protection, Sues Lucent Technologies.(Brief Article)(Statistical Data Included)

Winstar last week moved to sue Lucent Technologies, which it claims drove the company into bankruptcy by reneging on a prior loan agreement.

Winstar last week failed to make about $75 million worth of scheduled payments on its bank loans, forcing it to file for chapter 11 bankruptcy protection. Winstar is the parent company of online business information portal Office.com, although CBS owns a 33.3% stake in the unit.

According to the lawsuit, Winstar claims that it would have been able to make the payments if Lucent had in turn made good on its agreement to loan Winstar $90 million.

Lucent had contracts with Winstar to supply the company with telecom equipment and services and loan it up to $2 billion to build out its services. …

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