The federal bankruptcy court in Massachusetts Wednesday granted a joint motion by Trans National Communications International Inc. (TNCI) and its creditors committee to extend the time to solicit acceptance of the plan.
The new confirmation hearing date is set for May 16. TNCI will file an amended disclosure statement and Chapter 11 plan by May 11. Objections are due by 4 p.m. ET on May 15.
TNCI filed for Chapter 11 bankruptcy protection Oct. 9, 2011, and its reorganization plan on Feb. 6. As is common in bankruptcy proceedings, creditors filed objections to the reorganization plan, necessitating the request for extension.
The Agent Alliance, a buying group of 17 telecom agencies, as well as Sprint and Verizon form the TNCI Creditor’s Committee.
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.