Coyote Network Systems Inc. in Westlake Village has sold its 80% interest in American Gateway Telecommunications Inc. to that firm’s minority shareholders.
As a result of the sale, Coyote realized a noncash gain of $6 million in its second fiscal quarter, which ended Sept. 30. The transaction reduced Coyote’s consolidated debt by $10 million and provided for the return of all pledged collateral associated with that debt.
Based in Houston, American Gateway provides wholesale international long-distance telecommunications, primarily to entrepreneurial carriers.
As part of the sale agreement, Coyote will be American Gateway’s exclusive switching supplier through March 2001.
Coyote designs, builds and operates communications networks for emerging and entrepreneurial carriers. Its long-distance subsidiary, INET Interactive Network System Inc., recently expanded its primary retail business to include wholesale international long distance as well as local resale services.