Archive for Thursday, March 30, 2006

Archive for Thursday, March 30, 2006

NC Telecom deal unclear

March 30, 2006

Moffat County's future with NC Telecom is up in the air after a special commissioners meeting Thursday, scheduled to discuss the troubled telecom company.

The Meeker-based company, which is the county's Internet provider, filed for Chapter 11 bankruptcy in October. Chapter 11 bankruptcy frees a company from the threat of creditors' lawsuits while it reorganizes finances.

The county is in negotiations with the company so that if NC Telecom comes out of bankruptcy, the county will continue to do business with it.

Commissioners were ready to sign an agreement with the company at Thursday's meeting, but said the agreement wasn't ready to be signed.

Moffat County Attorney Kathleen Taylor said the delay could mean commissioners don't sign an agreement until April 11, but the delays won't disrupt Internet service.

"I don't see it as being a problem," Taylor said.

Commissioners said they might have the agreement with NC Telecom on their agenda for Tuesday's meeting.

In 1999, Moffat County paid the Meeker company $733,000 in advance for Internet service through 2011. The money from Moffat County helped the company open its doors.

Commissioners at the time entered into an agreement with NC Telecom despite warnings from some residents and community leaders that doing business with a start-up was a risky move.

The county has $507,000 remaining in prepaid services with the company.

All along, NC Telecom has said bankruptcy reorganization would not disrupt services it provides to the county.

Brandon Johansson can be reached at 824-7031, ext. 213, or bjohansson@craigdailypress.com.

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