Winstar execs resign; auction bid planned

Top executives at fixed wireless telephone services company Winstar have all resigned so they can bid for pieces of the company.

Winstar is seeking to establish procedures for an auction of its assets in early December after filing with the US Bankruptcy Court earlier this year.

William Rouhana, Winstar's chief executive officer, and Nathan Kantor, the company's president and chief operating officer, stepped down in order to be in a position to make a bid for Winstar as part of the auction process, the company said.

According to a company spokesman, Rouhana's and Kantor's resignation are a beneficial step for the company as their bids will drive up the price of the company's core assets.

Frank Jules, the current president and chief operating officer of US operations at Winstar, will take over the position of acting CEO.

"I am pleased that a timetable for the auction process has been set, as we continue with our plan to emerge from Chapter 11 as quickly as possible," Jules said in a statement.

Monies generated from the auction will be divided up among creditors that include Citicorp, Credit Suisse First Boston and Chase Manhattan Bank.

Winstar is also in the middle of a $10bn lawsuit against Lucent Technologies that alleges the telecommunications equipment maker violated an agreement to help fund Winstar.

Winstar's share have plunged more than 99 per cent in the past year.