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Windstream Bankruptcy: Potential Agent Commission Cuts a Concern

Bankruptcy Court

… overreact, but we will do whatever we can to keep our clients at bay and knowing what’s going on. We’ll assure them they’re not going to lose service because of this type of filing.”

In a video briefing prior to the filing, Adam Edwards, Telarus‘ CEO, said Windstream is still an operating entity, and “whether they declare bankruptcy or not, they have customers to service, they’re an ILEC with 911 responsibilities, and so the courts are going to want that entity to continue.”

Telarus' Adam Edwards

Telarus’ Adam Edwards

“What we have seen in bankruptcies in the past and what our experience has been, bankruptcy judges want the organization to continue, to pay off creditors, to pay back shareholders, to continue their operation for the public good,” he said. “And that means typically partners of the largest agencies – the most productive agencies – continue to be paid because they’re continuing to sell. We’ve seen that in four instances in history. We’ve seen that with XO, with Allegiant, with MCI, and many saw it with TNCI — and we expect to see the same here. We expect to continue to be paid, we expect that they’re going to want to continue to support their customers and they’ve said as much in a public statement.

“We’ll see where the chips fall, but everybody needs sales and that means they need channel partners,” Edwards added.

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