Case Study

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After spending a decade in the 1980's building cable and telecommunications networks in the United States and abroad, McCourt began to sense that the rapid technological changes would most certainly inspire regulatory changes in the way telecommunication services were delivered to consumers. In 1993, McCourt formed a $196M partnership and acquired controlling interest in C-TEC Corporation, a diversified telecommunications company with attractive assets. McCourt recognized that with the regulatory changes on the horizon and his knowledge of the industry, he could create catalyst events to create extraordinary shareholder value.

Through a comprehensive due-diligence process, McCourt and his team identified weaknesses that needed remedies in order to unlock shareholder value:

• Outdated labor agreement - no negotiations for 2 years
• Poor acquisition integration
• Parts of the network with deteriorating technology
• Stock performing poorly
• Short-term debt due, cash strategy needed
• Lacked long-term growth strategy

• Negotiated successful labor deal
• Divested non-strategic assets
• Monetized non-upgraded systems
• Implemented a rights offering
• Restructured balance sheet
• Separated into 4 publicly traded companies