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Forums » ALERT: NorthPoint files Chapter 11 » OH CRAP
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TransitMan
Premium,MVM
join:2000-09-05
Dayton, OH
clubs:
·RoadRunner Cable
·Time Warner VOIP
·Earthlink TrueVoice

Re: OH CRAP

said by justin:

Your ISP probably cannot switch you to another CLEC for now since your service, if it exists, maybe the property of NorthPoint and protected under Chapter 11.
This is all guesswork.. hey, we're in the same boat: both home and the dslr office are northpoint lines
Justin, you are essentially correct. The lines are leased by Northpoint from the Telco's, and as such are protected property under the Bankruptcy Laws. All leases and all property owned by Northpoint, et. al. are subject to all conditions imposed by the court. Therefore, no person or entity may remove or dispose of anything belonging to Northpoint unless so granted by the courts.
Northpoint cannot dispose of any property or services unless granted by the court.
In order for such things to occur, a motion must be filed in the court of record, stating the reasons why such action be allowed.
For now, everyone should be alright. It behooves those that have Northpoint as their CLEC to stay up to date on their situation and that of their service.
--

MINDSPRING ADSL @ 6860 ft. from CO. 1.5mb(down)/384kb(up)

lml2000
Whazzup

join:2000-08-17
Los Angeles, CA
·RoadRunner Cable

Re: OH CRAP

Yes, the lines that Northpoint leases are part of the bankruptcy estate, and thus are protected by US Bankruptcy laws, Chapter 11, and the rulings of the US Bankruptcy Court assigned to administer these proceedings. But it is important to note that it is the leasehold interest in the lines and not the lines themselves that are under protection of the US Bankruptcy Ct. The most important protection that Northpoint sought and accomplished by filing Ch. 11 is protection from any foreclosure upon its leasehold interest by any of the several incumbent carriers who are the single most important creditors unlikely to see a dime during the initial stages of these proceedings.
The purpose of a Chapter 11 proceeding is to allow a debtor to reorganize its financial affairs so it may continue to exist & operate its ongoing business while "holding off" creditors, secured and non-secured, while the reorganization takes place. It is in the interest of not only the debtor-in-possession (Northpoint), but also the long list of creditors, that Northpoint's leased lines continue to operate and generate income to the estate while undergoing a Chapter 11 reorganization.
Notwithstanding, you do raise a good point regarding the potential for "mischief" of Northpoint provisioned lines by the ILECs who will now not see revenues from their CLEC partner.
May clean lines be with us.
--
Regards,

lml
mdurkin

join:1999-08-11
San Bruno, CA

I beg to differ that the bankruptcy has any real effect on whether or not an ISP could switch
customers away to another carrier. Note I said customers, not lines... at least here in Pacbell
land, there is no such thing as switching a line to another DLEC, you have to order a new one
through the other carrier and they order a new pair from Pacbell. I switched a bunch of customers from
Covad to NorthPoint a year ago and it was a royal pain. If it was possible to switch working pairs to other
DLECs, I'm sure NorthPoint could interfere and the bankruptcy court might mandate that that physical pair switches to other DLECs not happen, but otherwise...

Whether an ISP could switch customers depends on their contract with NorthPoint. Whether
an end user could ask to be switched depends on the EU's contract with their ISP, or what
their ISP wants to do so if they can do so without breaking their contract with NorthPoint.
The bankruptcy may give NP protection against the ILECs shutting down lines... note in that case
NP is the customer, not the vendor as it is with ISPs buying lines from NP. Same relationship
as Flashcom getting protection for their lines from their bankruptcy... Flashcom is the customer.
No bankruptcy court can make a customer continue to buy from a vendor in bankruptcy beyond
enforcing existing contracts.

Our end users are not NorthPoint's customers, they have no obligation at all to NorthPoint, their
obligation is to us as the ISP, and we know the details of our obligation to NP. But all that said,
unless the absolute end is clearly near, I don't think an ISP is going to want to go through the
major hassle and expense of switching all their existing lines, perhaps even having to swap out
some EU's equipment, especially if service continues to be pretty good, which is generally the case w/ NP.
Where to take them anyway?
Where you choose to put new line orders might be another story... Megapath can tell it.
I don't think NorthPoint lines are ever going to suddenly disappear. If they do, there'll be more
DSL ISP deaths from ISPs that were perfectly healthy other than to get caught up in the feared,
but hopefully unlikely, disaster.
Forums » ALERT: NorthPoint files Chapter 11


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