Pac-West Exits Markets, Files Reorganization Plan
Pac-West Telecomm Inc. is plowing ahead with bankruptcy plans; the wholesaler has closed operations in more than two dozen states and filed an official reorganization plan.
Pac-West two weeks ago told customers in 24 states and the District of Columbia that it no longer operates in those markets. The provider pulled out of East Coast, mid-Atlantic, Midwestern and Southern territories because that was the best way to start emerging from bankruptcy. Wallace Griffin, chairman, president and CEO of Pac-West, said those markets werent as developed as those in the Western United States, and that they were losing money.
This action is expected to place Pac-West back on the road to profitability, Griffin said in a news release. Our priority will now turn to reorganizing around our remaining operations in the Western U.S.
At least one company is stepping in to rescue the customers Pac-West no longer serves. VoIP wholesaler Broadvox is offering custom pricing based on services needed, contract duration and other requirements.
Our objective is to offer any customer an equivalent package at less than what they were being charged by Pac-West, said David Byrd, vice president of marketing and product management for Broadvox.
Meanwhile, Pac-West and its subsidiaries this week filed a joint reorganization plan with a U.S. Bankruptcy Court in Delaware. Existing investor Columbia Ventures Corp. will get all of Pac-Wests stock once the proceedings are complete. Pac-Wests filing doesnt disclose how much the company will pay back to creditors, which include Cisco Systems Inc.
Objections to Pac-Wests disclosure statement are due Aug. 29; a hearing will take place Sept. 5.
Pac-West filed bankruptcy in May after a deal between the wholesaler and VeriSign Inc. fell through. The companies were going to build a VoIP network throughout the country. Pac-West listed assets of $53.9 million and debts of $66.4 million in its bankruptcy petition.
Broadvox www.broadvox.net
Pac-West Telecomm Inc. www.pacwest.com
