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A memo to agents from former TNCI CEO Brian Twomey said the company will file a motion with the bankruptcy court to reject all agent contracts.
May 2, 2013
By Khali Henderson
**Editor’s Note: Please click here for Channel Partners’ extensive coverage of the TNCI-Blue Casa sales process and its impact on agent contracts.**
Trans National Communications International Inc. (TNCI) intends to file a motion to reject all TNCI contracts, according to a memo to agents Thursday from Brian Twomey, former CEO of the company, which was acquired by Blue Casa Telephone LLC, on Tuesday.
“The buyer has instructed us specifically to take this action based upon their legal standing and the terms of the APA [asset purchase agreement],” Twomey said in the memo acquired by Channel Partners.
The federal bankruptcy court in Massachusetts approved TNCI’s APA with Blue Casa, Santa Barbara, Calif., March 14. TNCI filed for Chapter 11 bankruptcy protection, Oct. 9, 2011, and had expected to emerge from bankruptcy in spring 2012, but negotiations with the creditors stalled and by summer, the companies were moving forward with the bankruptcy sales process.
Twomey also indicated TNCI will block agents’ access to the company portal.
“The buyer has indicated that they have and are currently executing new agreements with agents that they have chosen to work with going forward,” he wrote, noting that the contract rejection does not apply to agents that have executed new agreements.
Agents with rejected contracts will receive their final commission payments May 31, 2013.
On a more personal note, Twomey thanked TNCI agents for their support and expressed his disappointment with the outcome.
“Im more disappointed than I can even begin to explain here by the ending of this era and by letting you down,” he said.
With the rejection of their contracts, TNCI agents become unsecured creditors vying for some $2.25 million to $2.5 million left after TNCI has paid its secured creditors.
As reported earlier this week, TNCI and its creditors’ committee have filed separate liquidation plans for resolving the claims of unsecured creditors. On Monday the creditor’s committee filed a motion with the bankruptcy court objecting to the approval of TNCI’s March 27 liquidation plan, calling its solicitation procedures “unfair, unreasonable, or simply contrary to the law.” Instead, the creditors’ committee is calling for the court to approve its procedures, which were filed April 4. A hearing on the matter is pending.
Read more about:Agents
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