Trans National Communications International Inc. (TNCI) told Channel Partners that the carrier is still “on track” to emerge from Chapter 11 bankruptcy by July 31, despite filing a motion for another week to get its creditors on board with the plan. This is the third extension requested in the case.
On Wednesday, the federal bankruptcy court in Massachusetts will hear TNCI’s latest motion to extend its exclusive right to solicit acceptances of a reorganization plan and to move the hearing date for approval of the Disclosure Statement to June 13. The amended plan would be submitted by June 11. TNCI also filed a motion for continue use of cash collateral through July 27.
TNCI’s original hearing on the reorganization plan was set for April 25 and was extended by the court to May 16. Last month the court approved a motion to move the hearing to June 6, with the deadline to respond to the amended plan moved to June 1.
Friday, the Creditors Committee Agent Alliance, Sprint and Verizon and Qwest (now CenturyLink) filed an objection to approval of the amended plan of reorganization. TNCI’s bank, RBS Citizens, did not object.
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.
TNCI spokesperson Jeanne Duca said the company plans to “resolve the final and remaining issues with regard to carrier contracts and then move to accept and cure agent agreements” likely in the week following the hearing, assuming the new June 13 date is approved by the court.
The company held an information conference call with agents Tuesday regarding the pending motions, she added.