By CHRIS BARTON it editor
Three New Zealand managers of telecommunications carrier WorldxChange have bought the local company from its United States parent for an undisclosed sum.
The management buyout follows the sale last month of WorldxChanges' Australian arm to listed Perth telco New Tel in a cash and share deal
worth $A11 million ($13.3 million) after the subsidiary was placed in voluntary administration.
In April, parent company World Access filed for Chapter 11 bankruptcy protection in the United States.
At the end of May, the United States and Canadian assets were sold to I-Link Incorporated for $US15 million ($34 million).
The New Zealand company will be headed by former chief financial officer Phillip Paine, with Paul Clarkin as operations and carrier director and Cecil Alexander as sales and marketing director.
All three have been with the company since it began operating in New Zealand in 1996.
Mr Paine said the New Zealand company will trade as WorldxChange Communications and all existing 39 staff will participate in a share of profits scheme. The company, which has 40,000 toll-bypass customers here and about $20 million in revenue, will use New Tel and other existing partners for interconnection of international toll traffic.
WorldxChange is widely acknowledged as a key instigator of low cost international and national toll calling in New Zealand - introducing 60c a minute residential calls to Britain in 1997 when its competitors' rate was $1.70 a minute.
Today, customers can pay as little as 30c a minute.
WorldxChange has plans for cheap national toll calls and land to mobile calls, but these have been put on hold because Telecom is refusing to switch the company's traffic over to Clear's network.
The Commerce Commission is investigating the matter.
