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Exhibit 99.03
NEWS RELEASE
[GST TELECOMMUNICATIONS LOGO]
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FOR IMMEDIATE RELEASE
June 12, 2000
GST TO PROCEED WITH OPEN AUCTION FOR ASSETS;
LETTER OF INTENT WITH TIME WARNER TELECOM EXPIRES
(VANCOUVER, Wash.) GST Telecommunications, Inc. (Nasdaq: GSTXQ), an Integrated
Communications Provider (ICP) in California and the western United States, today
announced that it is no longer proceeding pursuant to the Letter of Intent with
Time Warner Telecom Inc. (Nasdaq: TWTC) that had been addressed in the Company's
news release dated May 17, 2000. Instead, GST intends to proceed with an open
auction for substantially all of its assets. With the support of the Official
Committee of Unsecured Creditors appointed in its bankruptcy case, the Company
will seek approval today of open bid procedures from the District Court for the
District of Delaware with jurisdiction over the Company's bankruptcy
proceedings.
The Company also announced that, with the support of the Official Committee of
Unsecured Creditors, it will seek authorization from the District Court to
implement an Employee Retention Plan. The Company has developed the Plan, with
the input of the Committee, to create an incentive and reward for certain of its
employees to stay with the Company during the Chapter 11 process.
"Given the interest shown by a number of other bidders, the Committee's
commitment to support the Company's efforts to arrange for financing, and the
Committee's support of an open auction process, we believe we are taking the
right step in proceeding with an open auction," stated Tom Malone, acting chief
executive officer of GST. "We appreciate Time Warner Telecom's interest and hope
Time Warner Telecom will continue its due diligence and submit a bid as part of
the auction process. The support of the Committee and the interest of various
bidders strengthens our belief that GST has a valuable network, skilled and
dedicated employees and an attractive customer base."
GST Telecommunications, Inc., an Integrated Communications Provider (ICP)
headquartered in Vancouver, Wash., provides a broad range of integrated
telecommunications products and services including enhanced data and Internet
services and comprehensive voice services throughout the United States, with a
significant presence in California and the West. Visit GST's Web site at
www.gstcorp.com.
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This release may contain forward-looking statements which involve risks and
uncertainties. Our actual results may differ materially from the projections
made here. Additional factors which may affect actual results are contained in
the Company's filings with the SEC, including the report on Form 10-K for the
period ended December 31, 1999. Forward-looking statements in this release are
made pursuant to the safe harbor provisions contained in the Private Securities
Litigation Reform Act of 1995.
For more information, please contact:
GST Telecommunications, Inc.
Investor & Public Relations
(800) 667-4366
