The federal bankruptcy court in Massachusetts Wednesday granted a motion filed by Trans National Communications International Inc. (TNCI) to extend the time in which it has the exclusive right to solicit acceptances of a plan of reorganization. The new deadline is June 6.
On Tuesday the court approved a motion to move the confirmation hearing from May 16 to June 6, with the deadline to respond to the amended plan moved to June 1.
TNCI’s bank, Citizens Bank of Massachusetts, as well as the creditors committee, including the Agent Alliance, Sprint and Verizon, assented to the motions.
This is the second time TNCI has sought an extension. On April 25, the court granted a joint motion by TNCI and its Creditors Committee to May 16.
TNCI spokesperson Jeanne Duca said the company will use the additional time to negotiate with its carrier creditors. “Carrier discussions are complex and although much progress has been made, additional time is required to complete these discussions,” Duca said.
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 Qwest Communications (now CenturyLink), 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.