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.
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Regards,
lml |
