Trans National Communications International Inc. (TNCI) told Channel Partners that it is continuing to negotiate with its carrier creditors in an effort to emerge from Chapter 11 bankruptcy after the parties failed to reach agreement prior to the scheduled hearing June 13.
No revised hearing date has been set to approve the amended reorganization plan. And it is not clear whether the delay will impact the July 31 date when TNCI expected to emerge from bankruptcy.
“The judge directed us to go forward to keep working with the committee to establish a specific direction that works for all,” said TNCI spokesperson Jeanne Duca. “It will be up to TNCI, upon completion of this negotiation [and] direction, to seek a date to return to court.”
The federal bankruptcy court in Massachusetts has approved extensions for the hearing date three times, from the original date of April 25, to May 16 to June 6 to June 13.
No objections were filed prior to the June 13 meeting as creditors were focused on reaching agreement on objections filed by the Creditors Committee for the June 6 hearing. 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.
“While we had hoped to resolve prior to the 13th, that was not the case and this is why the judge granted additional time as needed,” 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.
So, how does this impact agents? “Bottom line is that our position with regard to our desired outcome has not changed and, as always, we remain committed to accepting the agent contracts as soon we have approval to our disclosure statement,” Duca said.