National Rural preparing credit bid for Vitelco, Innovative Communication

New York, Jan. 30 - National Rural Utilities Cooperative Finance Corp. that it is prepared to make a credit bid as the first step in acquiring Vitelco and other Innovative Communication Corp. assets.

National Rural noted that its affiliate, Rural Telephone Finance Cooperative, is the lender to Innovative Communication and holds a $525 million judgment against that company.

"After examining the condition of these companies and recognizing the condition of the credit markets, National Rural believes it must be prepared to credit bid to acquire and rehabilitate Vitelco and other ICC assets in order to improve the opportunity to maximize recovery," stated National Rural chief financial officer Steven Lilly in a news release.

"National Rural fully understands the responsibility that this bid entails and, if successful, is prepared to meet all obligations associated with the ownership of these assets," he continued. "We are preparing a comprehensive plan to enhance the success of this endeavor."

Innovative, a St. Croix, U.S. Virgin Islands, holding company, had an involuntary bankruptcy petition filed against it on Feb. 10, 2006.

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