Call-Net and 360networks

Call-Net Enterprises Inc. announced on August 28, 2000 that it has signed agreements with 360networks inc. that include: the sale/indefeasible right of use (IRU) of excess dark fibre in Canada and the United States; the purchase/IRU of local access fibre and other long haul fibre in Canada and the United States; a swap of certain fibre routes; and a commitment to purchase other products and services from 360networks over the next five years.

Call-Net expects to receive in excess of $240 million in cash proceeds for its dispositions, following release of certain short-term holdbacks to ensure a proper transition of the assets. As part of the transaction, Call-Net has agreed to purchase (once completed) $21 million of fibre from 360networks, consisting of a combination of local access intracity fibre and long haul intercity fibre. Call-Net has also committed to purchase $15 million of products and services from 360networks over five years.

Joe Milstone, in-house counsel for Call-Net, called on Jeff Barnes, Leslie Johnson, Doug Scott, Michael Wunder, Ken Chun, Alex Roberts, Peter Bouzalas and Chuck Rich of Fraser Milner Casgrain to assist; and David Klassen, in-house counsel for 360networks, was assisted by Bruce Tattrie, Joe Garcia and Paul Armitage of Campney & Murphy.


Doug H. Scott Leslie A. Johnson Charles Rich Bruce Tattrie David M.G. Klassen Jeff Barnes Y. Ken Chun Alex C. Roberts Michael J. Wunder Peter Bouzalas Joseph A. Garcia A. Paul Armitage