IDT Corp. will up its investment in both Teligent Inc. and ICG Communications. Under an agreement with IDT's subsidiary IDT Investments Inc., affiliates of Hicks, Muse, Tate & Furst Inc. will receive shares of IDT Investments' Series B Convertible Preferred Stock in exchange for the affiliates' stakes in Teligent and ICG.
Presently HMTF affiliates own 219,998 shares of Teligent's Series A convertible preferred stock, 23,000 shares of ICG's 8 percent Series A-2 convertible preferred stock and warrants for 3.1 million shares of ICG's common stock.
The deal should occur by the end of May, and IDT will own about 37 percent of Teligent and 42 percent of ICG voting power, IDT reports.
IDT recently purchased Liberty Media's 33.7 percent stake in Teligent and 33 percent of ICG, also from Liberty Media. ICG filed for Chapter 11 in November and Teligent last week got a $350 million loan extension until May 15.