Western Union Completes Sale of Telex, Electronic Mail Units
UPPER SADDLE RIVER, N.J. (AP) - Western Union Corp., hoping to avoid involuntary bankruptcy, completed a deal Monday to sell its telex and electronic mail businesses to American Telephone & Telegraph Co. for $180 million.
Western Union will use the money to buy back some of its junk bonds, helping ease its crushing interest-payment burden.
Western Union's remaining operations are its money-transfer service, electronic bill-paying service and electronic letter services such as Mailgram.
Western Union will buy back $335 million worth of its high-interest, high-risk bonds at 50 cents on the dollar, the company said. The buyback involves $329 million worth of 19 1/4 percent notes and $6 million of 16 percent notes from investors who accept the offer by Thursday.
Western Union's debt will stand at $311 million after the bond buyback.
The transaction eases the threat of involuntary bankruptcy, which has dogged the company since it missed a $51 million …
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Publication information: Article title: Western Union Completes Sale of Telex, Electronic Mail Units. Contributors: Not available. Newspaper title: THE JOURNAL RECORD. Publication date: January 1, 1991. Page number: Not available. © 2009 THE JOURNAL RECORD. Provided by ProQuest LLC. All Rights Reserved.