Com Systems Scraps Plan to Buy Futurtek’s Assets

Com Systems, a Van Nuys provider of long-distance telephone service for businesses, canceled its plan to buy most of the assets of Futurtek Communications because of Futurtek’s deteriorating financial health.

Futurtek, a regional long-distance carrier based in San Mateo, and its principal unit, American Communications Enterprises filed for reorganization under federal bankruptcy laws Dec. 5, Com Systems said.

Com Systems rescinded its Sept. 22 agreement to buy most of Futurtek’s operating assets, which were held by ACE. Com Systems was to have exchanged 950,000 of its common shares and assume certain Futurtek liabilities, giving the transaction a total value of $6 million at the time.

However, Com Systems said it continues to provide certain long-distance services to ACE, and is a secured creditor of ACE. Com Systems will consider acquiring ACE’s customer base during ACE’s reorganization, Com Systems President Rex Licklider said in a statement.

Com Systems has about 20,000 customers in California, Nevada, Arizona and Utah. ACE, which operates under the Futurtek name, has 7,000 customers in California and Nevada.