March 20, 2002 — (WEB HOST INDUSTRY REVIEW) — Exodus Communications Inc. announced today that it has won approval of the $45 million sale of an Internet data center to Deutsche Bank AG. Proceeds from the sale of the data center–which is no longer in use–will be distributed to creditors under a reorganization plan. The sale is expected to close this month.
The sole bidder for the assets of the company’s Parsippany, N.J., Internet data center, Deutsche Bank was also the stalking horse bidder for the assets.
In marketing the assets, Exodus Communications contacted less than 20 potential purchasers. Three parties, including Deutsche Bank, expressed interest, according to court documents.
The deal is separate from the company’s recent $750 million-sale of most of its assets last month to Digital Island, a unit of global telecommunications group Cable & Wireless PLC. The company listed consolidated assets of $5.99 billion and liabilities of $4.45 billion as of June 30 in its petition, after filing for bankruptcy last September.
Judge Sue L. Robinson of the U.S. Bankruptcy Court in Wilmington, Del., approved an extension of the company’s exclusive period to file a reorganization plan and solicit plan acceptances.
Exodus Communications has until Monday to file a plan and until May 24 to obtain the votes necessary for plan confirmation.
