Since the Telecommunications Act of 1996 and subsequent federal regulatory changes, many telecom companies have faced increased financial challenges. Since 2000, several major telecom companies have filed for Chapter 11 bankruptcy to restructure debt and clean up their balance sheet. As telecom companies continue to face several financial challenges, primarily stemming from competition and consolidations, which continues to drive down service prices and profits, Chapter 11 bankruptcies will continue to be a strategy utilized by the industry to deal with bad debt and decreased profits. Regulatory problems and changes continue to also be a major issue faced in this highly-regulated industry. Licensing and other reimbursement rate issues are critical.
In this current economic climate, Chapter 11 bankruptcy can be an important tool to restructure existing indebtedness for a telecom company or provide a mechanism for an orderly sale of assets or wind down of operations. The attorneys of DelCotto Law Group have experience in restructuring telecom companies, both in out-of-court restructurings and Chapter 11 bankruptcy proceedings. Specifically, the attorneys of DelCotto Law Group can assist a telecom company in analyzing and addressing key bankruptcy issues including, but not limited to:
- Executory Contracts
- Automatic Stay issues with regulatory agencies
- Telecommunications Act of 1996
- Customer Notification
- License Transfer/Assignment
- Sale of Corporate Assets