SusCom Closes N.Y. System Buy from RCN3/09/2004 7:49 AM Eastern
RCN Corp. said Tuesday that it closed the sale of its Carmel, N.Y., cable system to Susquehanna Communications Inc. for $120 million.
RCN said it would help Susquehanna with the migration of video and high-speed Internet customers and support the system’s voice services "for a period" following the closing.
The system has about 30,000 subscribers, so the purchase was for some $4,000 per customer.
At the time of the initial sale agreement last July, Suscom said it liked the Putnam County system’s demographics and looked forward to getting into the voice-over-cable business for the first time.
RCN has been selling some of its smaller systems to help pare debt. The company has said in recent weeks that it is trying to renegotiate its debt and it expects that to occur in the framework of a prepackaged Chapter 11 filing in bankruptcy court.