Commissioners discuss telecom bankruptcy
March 28, 2006
Moffat County commissioners went into a 40-minute executive session Tuesday to discuss the NC Telecom bankruptcy filing.
The Meeker-based company filed for Chapter 11 bankruptcy in October. Chapter 11 bankruptcy frees a company from the threat of creditors’ lawsuits while it reorganizes finances.
Moffat County Attorney Kath–leen Taylor said after Tuesday’s executive session that the county is in negotiations with NC Telecom so that if the company comes out of bankruptcy, the county will continue doing business with it.
Rick Heming, NC Telecom general manager, said the company is in similar negotiations with Rio Blanco County, which also has prepaid for Internet services with the company.
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 re—-maining in prepaid services with the company.
All along, NC Telecom has said bankruptcy reorganization would not disrupt services it provides to the county, and it hasn’t.
In November, commissioners said the county would begin shopping around for another Internet provider because of NC Telecom’s bankruptcy.
Commissioners said no decision has been made about switching Internet providers.
Commissioner Saed Tayyara said the county has some recommendations about other providers that they are still considering.
Heming said he expects bankruptcy proceedings to be complete in about 60 days.