On August 21, 2002, an affiliate of Intelsat, Ltd. and Teleglobe Inc. entered into an agreement under which the Intelsat affiliate purchased shares held by Teleglobe in Intelsat for US$65 million and certain commercial arrangements between the companies were revised. The shares will be held by an escrow agent until they are subsequently resold or otherwise distributed. The Intelsat affiliate will receive all proceeds from the sale of the Intelsat shares up to a specified amount, after which Teleglobe would be entitled to receive the remaining proceeds. The transaction has been approved by the Ontario Superior Court of Justice and closed on September 18, 2002. Teleglobe filed for creditor protection under the Companies' Creditors Arrangement Act in May 2002. The arrangements between Teleglobe and Intelsat were entered into as part of Teleglobe's plan to preserve and unlock the value of its core telecom business and to dispose of non-core assets. Aubrey Kauffman, with another law firm at the time, was part of a team of lawyers advising Intelsat in this matter.
