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SECURITIES AND EXCHANGE COMMISSION
Washington, DC 20549
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FORM 8-K
CURRENT REPORT
PURSUANT TO SECTION 13 OR 15(d)
OF THE SECURITIES EXCHANGE ACT OF 1934
Date of Report (Date of earliest event reported): May 2, 1997
MIDCOM Communications Inc.
(Exact name of registrant as specified in its charter)
Washington
(State or other jurisdiction of incorporation or organization)
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000-26118 91-1438806
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(Commission File Number) (I.R.S Employer Identification No.)
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1111 Third Avenue Seattle, Washington 98101
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(Address of principal executive offices)
(206) 628-8000
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(Registrant's telephone number, including area code)
Page 1 of 4 pages.
Exhibit Index at page 3.
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Item 5. Other Events
On May 2, 1997 MIDCOM Communications Inc. (the "Company") issued a
press release disclosing additional steps to restructure the Company's
operations. The text of that press release is included with this report as
Exhibit 99.1.
Item 7. Financial Statements, Pro Forma Financial Information and Exhibits.
(c) Exhibits
99.1 Press release dated May 2, 1997.
SIGNATURES
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 hereunto duly authorized.
MIDCOM COMMUNICATIONS INC.
Dated: May 2, 1997 By: /s/ Steven P. Goldman
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Steven P. Goldman
Vice President and General Counsel
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MIDCOM COMMUNICATIONS INC.
EXHIBIT INDEX
to Interim Report on Form 8-K
99.1 Press release dated May 2, 1997.
3
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Exhibit 99.1
FOR IMMEDIATE RELEASE
Contact: Teresa C. Stackpole
Director, Corporate Communications
206/628-6115
MIDCOM TO RELOCATE HEADQUARTERS TO SOUTHFIELD, MICHIGAN
SEATTLE, WA (May 2, 1997) -- MIDCOM Communications Inc. (NASDAQ: MCCI) today
announced that it will begin to transition its Seattle-based corporate
headquarters to Southfield, Michigan, with expected completion in early fall
1997.
The company has had significant operations functions based in
Southfield since mid-1996, along with its marketing and product development
departments. Corporate support functions currently located in Seattle, including
human resources, legal, finance and information services, will now be combined
with existing operations in Southfield. Of the company's total employee base of
684, the relocation plan will affect approximately 130 employees.
"Consolidating MIDCOM's activities in a central location will allow us
to reduce costs and improve our productivity," said William H. Oberlin, MIDCOM's
president and chief executive officer. "As part of our turn-around strategy, we
continue to recruit in information services and other key functional areas and
we expect that effort to be bolstered by our reduced need to compete with
well-known, Seattle-based companies, like Boeing, Microsoft and Starbucks."
Concurrently, the company announced several organizational changes
related to the transition to Southfield. William J. Huber will join the company
as vice president of information services. Huber has 18 years of experience in
data processing and has recently worked as a consultant with MIDCOM identifying
enhancements to the company's existing systems.
Also joining the company is Peter K. LaRose who will serve as vice
president of business planning. LaRose has a lengthy background in the
telecommunications industry, including several years at MCI and Winstar. He has
recently been in a consulting role at MIDCOM in the financial area where his
duties will now be expanded to include cost analysis, planning and budgeting,
and corporate development activities.
Jerry L. Cady, previously vice president and general manager of PacNet
Inc., MIDCOM's subsidiary offering frame relay services, has been named vice
president of operations for MIDCOM. Cady's background makes him well-suited to
oversee the company's operations functions, including plans to create one
inclusive network with its voice, frame relay and fax services networks. Cady
will relocate from Seattle to the Southfield site.
Willow S. Korpela, currently vice president and controller for MIDCOM,
will assume the role of vice president and treasurer at the Southfield location.
Korpela has been with the company since July 1996.
Jayne F. Diorka has been promoted to vice president and controller for
the company from her previous position as director of financial support
services. Diorka, who has been with the company since June 1996, was head of
revenue management at both Frontier and ALC Communications prior to joining
MIDCOM.
Due to family and other obligations, Robert J. Chamberlain, currently
executive vice president and chief financial officer, and Robert L. Nitschke,
currently executive vice president of operations, have elected
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not to relocate to Southfield, but will continue to serve in their current
positions with the company until the transition is successfully completed.
"Both Bob Nitschke and Bob Chamberlain have made major contributions to
the company. We regret that they will not be joining us in Southfield, but we
understand the rationale for their decision," said Oberlin. "They have been, and
remain, committed members of our team, which is demonstrated by their enthusiasm
to manage this transition to a successful close."
Additionally, the company has announced that the heads of the remaining
departments, including legal and human resources, will be relocating to
Southfield.
MIDCOM will retain a full-scale sales organization in Seattle which is
an important market for the company. In addition, the PacNet operations will
remain in Seattle.
Relocation packages will be offered to Seattle employees. "On a
personal level, it is with mixed feelings that we relocate headquarters," added
Oberlin. "The efforts of our Seattle employees have contributed to our
turn-around effort and I sincerely hope that many of them elect to stay with the
company. Whatever their choice may be, we wish them success." Severance packages
will also be provided.
Founded in 1989, MIDCOM Communications Inc. provides a broad range of
telecommunications services to small and medium-sized businesses nationwide. The
company has regional offices throughout the nation and currently invoices
approximately 100,000 customer locations nationwide.
