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Coyote Network Sells Its American Gateway Interest

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.

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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.


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