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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C., 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
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Date of Report (Date of
Earliest event reported): July 30, 1999
OPTEL, INC.
(Exact name of registrant as specified in its charter)
Delaware 95-4495524
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(State or other jurisdiction (I.R.S. Employer Identification
of incorporation or organization) Number)
333-24881
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(Commission File Number)
1111 West Mockingbird Lane, Suite 1000, Dallas, Texas 75247
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(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code: (214) 634-3800
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ITEM 5. OTHER MATERIALLY IMPORTANT EVENTS
On July 30, 1999, the Registrant issued the press release
attached hereto as Exhibit "A" announcing Registrant's intention to appoint
Pierre Collins as President and Chief Executive Officer.
ITEM 7. EXHIBITS
Press Release, dated July 30, 1999.
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SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
Date: July 30, 1999
OpTel, Inc.
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(Registrant)
By: /s/ MICHAEL E. KATZENSTEIN
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Name: Michael E. Katzenstein
Title: Vice President and General Counsel
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EXHIBIT INDEX
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Exhibit
Number Description Page No.
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20 Press Release, dated July 30, 1999 5
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APPOINTMENT OF NEW CEO AT OPTEL, INC.
DALLAS, JULY 30TH, 1999 - OpTel, Inc. announced today that Mr. Pierre Collins
has been appointed President of Videotron International, with specific
authority for the oversight and management of Le Groupe Videotron's investment
in OpTel. OpTel also announced its intention to appoint Mr. Collins as its
President and Chief Executive Officer (see attached resume). "We have found an
outstanding CEO to lead OpTel successfully to its goal of launching full scale
residential telephony on its own switching equipment," said Andre Chagnon,
Chairman of the Board. "Mr. Collins offers an uncommon combination of
expertise, knowledge of the telecommunications industry, and extensive
experience. In particular, for the last two years he was Regional Vice
President and General Manager at MetroNet (now AT&T Canada). He possesses
strong management skills and exceptional capabilities in corporate finance and
operation management."
Mr. Collins will benefit from the collaboration of Mr. Benoit Deschamps, Vice
President Financial Planning and Treasurer at Groupe Videotron, who will act as
Vice President Financing of OpTel. Mr. Deschamps possesses strong knowledge of
the Company's operations and has the financial management expertise required to
complete the consolidation of OpTel's financial structure.
In addition, the Board has reviewed the financing plan of OpTel. Initially,
OpTel intends to complete its negotiation for an expected $30 million bridge
loan from commercial banks. This should provide funding for operations until
the end of the calendar year. At the same time, OpTel is working with major
investment banks to structure more permanent financing involving both debt and
equity.
With the intended retention of Mr. Collins as CEO and the involvement of Mr.
Deschamps as Vice President Financing, OpTel furthers the renewal of its
management team, which began last spring when three senior executives joined
OpTel as Vice President of Sales, Vice President of Marketing and Vice
President of Engineering.
The Board of Directors of OpTel, Inc., is confident it has assembled a
high-powered team, well equipped to generate significant growth in the
Company's operations, benefiting its 750 employees, 217,750 cable subscribers,
and 16,560 switched telephone subscribers.
The Board also acknowledges the contribution of Mr. Louis Brunel, OpTel's
former CEO, who has decided to retire from the Videotron group of companies,
after a rewarding career with them.
OpTel is a leading network-based provider of integrated communications
services, including local and long distance telephone, cable television and
high-speed Internet access services, to residents of multiple-dwelling units in
the United States. The Company currently provides cable television and
telecommunications services in a number of metropolitan areas including Los
Angeles, San Diego, San Francisco, Phoenix, Denver, Houston, Dallas-Fort Worth,
Chicago, Indianapolis, Atlanta, Miami-Ft. Lauderdale and Orlando-Tampa. OpTel
is 70.1%-owned by Le Groupe Videotron ltee, a Canadian holding company with
controlling interests in companies engaged in cable distribution,
telecommunications, and broadcasting.
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For further information, please contact :
Benoit Deschamps: (214) 634-3800
The foregoing includes certain forward looking statements that are identified
by words such as "expect" and similar expressions. Achievement of such
expectations is subject to various risks and uncertainties, including, among
others, the availability of additional financing on a timely basis and on
reasonable terms, obtaining various regulatory approvals and successful
management of the Company's expansion plans.
PIERRE COLLINS
Pierre Collins spent most of his career in the field of telecommunications.
During the last two years, he was Regional Vice-President and General Manager
for MetroNet Communications Inc. (now AT&T Canada), one of Canada's foremost
providers of local telecommunications services. As MetroNet's top manager in
Eastern Canada, Collins built the company's Eastern operations from the ground
up. He orchestrated all aspects of the business, including infrastructure,
technology, and sales development.
From 1995 to 1997, Collins was the first President of Capital Communications
CDPQ inc., a private equity investor specializing in the communications and
telecommunications industries. Capital Communications is a subsidiary of Caisse
de depot et placement du Quebec, one of the largest pension funds in North
America, with total assets of C$68 billion. Collins conducted the company's
structuring and devised its 5-year business plan. Under his management, the
portfolio value of Capital Communications increased from C$630 million to C$950
million.
Collins also worked for BCE Mobile, Optinet Telecommunication, and CF Telecom,
and acted as Director of the North American Telecommunication Group for Alcan
Aluminum. He graduated in 1982 with a B.A. in Mathematics and Computer Science
from University of Montreal.
