Message #6 From:
NewsBot Date: December 21, 2005 11:15:00 AM
TRIN News Trinsic Receives Funding; Settles New York Tax Dispute
TAMPA, Fla.--(BUSINESS WIRE)--Dec. 21, 2005--Trinsic, Inc. (OTCBB: TRIN), a leading provider of traditional and IP telephony services, announced today that it has borrowed $1,000,000 from The 1818 Fund III, L.P., its largest shareholder, in order to take advantage of a tax settlement with the State of New York. The Fund is one of a family of funds managed by Brown Brothers Harriman & Company. In connection with the loan, Trinsic delivered to the Fund a promissory note bearing interest at 12% annually and due on demand. The promissory note requires that, upon request by the Fund, Trinsic must provide to the Fund a security interest in any and all of its assets, except those assets subject to its Receivables Sales Agreement with Thermo Credit LLP. According to the Company, the Fund did request and the Company has provided to the Fund a mortgage on real estate in Atmore, Alabama where it has an operations facility.
The settlement with the State of New York resolves certain corporate and sales tax disputes from the years 1999 through 2001. In the settlement, Trinsic has agreed to pay approximately $2.8 million by a down payment of $750,000 and 24 equal monthly installments. The Company says that it adequately accrued for this tax liability in previous periods.
About Trinsic
Trinsic offers consumers and businesses traditional and IP telephony services. Trinsic's products include proprietary services such as Web-accessible, voice-activated calling and messaging features that are designed to meet customers' communications needs intelligently and intuitively. Trinsic is a member of the Cisco Powered Network Program and makes its services available on a wholesale basis to other communications and utility companies, including Sprint. Trinsic, Inc. changed its name from Z-Tel Technologies, Inc. on January 3, 2005. For more information about Trinsic and its innovative services, please visit www.trinsic.com.
