Winstar assets find a home in IDT

A newly formed unit of long-distance phone company IDT reportedly received approval from a bankruptcy court to purchase the majority of Winstar Communications’ assets for $38 million.

The court ruled in favor of IDT’s bid because the group said it expected it would be able to close the sale in less than 24 hours, which would enable the Winstar service to remain operational for government agencies such as the Justice Department, the Department of Defense, the Federal Bureau of Investigation and some offices of the executive branch.

IDT also promised to prepay as much as $60 million in vendor expenses to ensure service for the near term. Several vendors, including Verizon, Williams and WorldCom, reportedly have been providing service to Winstar for weeks without payment.

--Kelly Carroll, staff writer