A federal bankruptcy court in Massachusetts Wednesday will hear a joint motion by Trans National Communications International Inc. (TNCI) and its creditors to extend the date of the confirmation hearing on TNCI’s reorganization plan to the week of May 14 to allow time to address creditor objections.
Originally, Wednesday’s hearing was scheduled to confirm the plan. TNCI filed for Chapter 11 bankruptcy protection Oct. 9, 2011, and filed its reorganization plan on Feb. 6. Creditors had until April 21 to file objections to the reorganization plan.
TNCI spokesperson Jeanne Duca, told Channel Partners that several creditors filed objections. “It was not a surprise, but expected,” she said, noting that objections to reorganization plans are common in bankruptcy proceedings.
Duca said TNCI will work with the creditors to amend the plan, which is expected to be filed a week before the rescheduled hearing. Creditor objections would be due within two days of the new hearing date. If the plan is confirmed by the court, creditors would vote on plan during a six-week period, putting TNCI’s possible emergence from bankruptcy at the end of June or early July.
Duca said TNCI held a conference call with its channel partners April 21 to inform them of the motion to postpone the confirmation hearing. “We also indicated to them once again that as we complete settlements with carriers, we will move to address and accept agent contracts,” she said.
Some settlements with Tier 2 carriers have been reached, she said, but those with major carriers are pending.
Citizens Bank of Massachusetts is one of TNCI’s largest secured creditors with a claim of roughly $4.3 million. Some of the company’s largest unsecured creditors include AT&T, Sprint and CenturyLink’s Qwest Communications, which is owed nearly $2 million, according to the initial bankruptcy filing. Sprint is owed more than $5 million while AT&T is owed roughly $1.66 million.
In financial statements filed with the court, TNCI projects 2012 total revenues of $73.3 million. Of its projected $60.2 million in total direct costs, TNCI anticipated that agent commissions will account for nearly $8.3 million in costs. The company listed liabilities of $17.9 million and total assets of nearly $14.7 million as of December 2011.
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October 18 2018 @ 22:10:09 UTC