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AT&T gets NorthPoint assets
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March 22, 2001: 7:23 p.m. ET
AT&T pays $135 million for substantially all assets of bankrupt DSL firm
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NEW YORK (CNNfn) - Bankrupt digital subscriber line company NorthPoint Communications will sell substantially all of its assets to AT&T for $135 million in cash.
The U.S. Bankruptcy Court approved the sale of assets, which is expected to close within 60 days pending regulatory approval.
NorthPoint basically collapsed after Verizon Communications decided in Nov. 2000 not to take a 55 percent stake in the troubled company.
NorthPoint subsequently sued Verizon for $1 billion in compensation. The company will retain enough assets to continue it legal battle.
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"We are delighted to be acquiring NorthPoint's DSL assets," said Robert M. Aquilina, co-president of AT&T Consumer. "They will help us in our efforts to move aggressively to bring the full benefits of DSL to consumers and businesses. These benefits include high-speed Internet access, local and long distance calling, and exciting broadband services, including virtual private networks, among other possibilities, in the future."
As part of the assets, AT&T (T: Research, Estimates) will acquire network equipment, systems and software support and two leased buildings in Emeryville, Calif. 
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