In return for the credit line, Odyssey Telecorp Inc., a one-year-old, telecom salvage firm formed by chairman Sean Doherty in Palo Alto, CA, promises to pay FECI up to $30 million at an undetermined date, based on Epic's performance. FECI also will receive a warrant to buy up to 15% of stock in privately held Odyssey.
In a prepared statement, FECI chairman/CEO Robert W. Anestis says his company expects to book a small accounting gain from the sale and claim a federal tax refund of $72 million on its 2002 return. FECI will also carry forward tax losses of $80 million on the Epik sale.
As GlobeSt.com previously reported, Anestis put Epik on the selling block in November, writing off the Orlando-based firm's entire book value of $238.1 million.
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