Court OKs WorldCom’s purchase of Rhythms assets

WorldCom has confirmed that a bankruptcy court approved its $40 million bid to buy certain assets of bankrupt DSL provider Rhythms NetConnections, allowing WorldCom to maintain the DSL services it provides customers through a resale agreement with Rhythms.

Part of the $40 million package includes $32 million in debtor-in-possession financing, according to WorldCom.

The deal will allow WorldCom to maintain DSL service in 31 metropolitan markets that was jeopardized by Rhythms receiving permission from the FCC to shut down its network on Monday.

“The combination of Rhythms' DSL facilities and WorldCom's nationwide data and IP network infrastructure creates some of the industry's most compelling and robust business-class service offerings for our customers,” said Ron Beaumont, WorldCom’s chief operating officer, in a prepared statement. “This acquisition inexpensively strengthens WorldCom's position as the premier provider of end-to-end, broadband data and Internet solutions for businesses around the world.”

—Donny Jackson, news editor