OTC/PINK Breaking Material Events

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CGSYQ Global Capacity Announces Acquisition by Pivotal Group

http://www.prnewswire.com/news-releases/global-capacity-announces-acquisition-by-pivotal-group-115002649.html

Global Capacity Announces Acquisition by Pivotal Group



Court Enters Order Approving Sale
CHICAGO, Feb., 1, 2011 /PRNewswire/ -- Global Capacity (OTC Bulletin Board: CGSYQ), the world's leading telecommunications information and logistics company, today announced that the United States Bankruptcy Court for the District of Delaware has entered an order approving the acquisition of substantially all of the assets of Global Capacity by Pivotal Global Capacity, LLC, an affiliate of Pivotal Group, Inc. This approval follows the acquisition by Pivotal of 100% of the secured debt of Global Capacity. Global Capacity and Pivotal Group have now commenced seeking regulatory approvals and estimate the completion of the process by April 30, 2011.
"This decision by the court represents an important milestone for Global Capacity and our customers, our suppliers, and our employees," noted Patrick Shutt, Global Capacity CEO. "Pivotal Group has recognized the tremendous potential of the Global Capacity platform, and this acquisition provides the Company with the financial strength and strategic backing we need to continue to provide innovative solutions to our global base of customers and prospects."
Upon completion of the acquisition, Global Capacity will emerge from bankruptcy as a privately held company with no debt and positive monthly cash flow from operations. The Company has maintained strong customer and supplier relationships throughout its restructuring process, and on emergence, Global Capacity will have the financial strength and backing required to support the Company's organic growth objectives, while investing in its strategic mission to create the first Global Access Exchange.
"We are extremely pleased that the Court has approved our bid to acquire Global Capacity, and we look forward to quickly completing the regulatory process and helping them to emerge from bankruptcy as a financially sound company," said Francis Najafi, CEO of Pivotal Group. "We are very excited about the growth potential of this platform, and look forward to working with the Global Capacity team to unlock its potential."
Jerry Pence, Managing Director of Pivotal Group, added, "The explosion of demand for global network bandwidth coupled with the fundamental inefficiency of the global access network market creates an amazing opportunity for companies with the vision and the capability to enable this critical access exchange. We believe Global Capacity is uniquely positioned to address this opportunity, and we are excited about the chance to work with the company going forward." For more information on Global Capacity and our service offerings, please visit www.globalcapacity.com
About Global Capacity
Global Capacity is a telecom information and logistics company that helps customers improve the efficiency and reduce the cost of access networks globally. The Company is creating the first Global Access Exchange that provides ubiquitous access network solutions across geographies and suppliers. Based upon its core platforms, One Marketplace Information Exchange and One Marketplace Network Exchange, Global Capacity delivers Enablement Solutions and Outsource Solutions to Purpose-Built Integrators, Telecommunication Carriers, and Enterprise Customers globally. Global Capacity is headquartered in Chicago, IL, with additional offices in Waltham, MA, Glastonbury, CT, Manchester, U.K., and Lisbon, Portugal. For more information, please visit www.globalcapacity.com or contact the Company at [phone]
About Pivotal Group
Pivotal Group is a leading investment company headquartered in Phoenix, Arizona, with primary concentration on private equity and real estate. Its focus is centered on the implementation of its business strategy in conjunction with a comprehensive understanding of capital market dynamics. For more information, visit www.pivotalgroup.com.